Transcript Development of a Quality-Adjusted Labor Productivity Index in the European Union

Development of a quality adjusted
labour productivity index in the
European Union
Isabelle Rémond-Tiedrez
European Commission Eurostat
Antonio F Amores
European Commission, Joint Research Center, IPTS
Eurostat
QALI in European Union
• Outline
• Two projects: QALI and Consolidated European
SUIOTs
• Methodology of QALI
• Data sources for QALI
• Consolidation of 28 national Supply, Use Tables
• Some results
Eurostat
Two projects: productivity indicators
and EU-SUIOT
1. Productivity indicators:
• collaboration with JRC-IPTS
• Aim:
regular publication of coherent set of
competitiveness indicators across MS and industries
Quality Adjusted Labour Index
Capital productivity indicators
Time series 2002 - 2014
• Integrated into European Wheel of Competitiveness:
statistical framework for competitiveness
• Project duration: 2014 - 2016
Eurostat
Two projects: productivity indicators
and EU-SUIOT
2. European consolidated Supply and Use
Tables
 Coherent EU and euro area SUTs and IOTs : analytical
purposes; modelisation
 Time series 2005-2014
 Key input for environmental accounts:
• Adding environmental extensions (EE) to the Supply and Use
Tables (SUT);
• Creating Environmentally Extended symmetric Input Output
table (EE IOT)
 First dissemination 2011
Eurostat
QALI, methodology
 Törnqvist index: weights are labour income
shares
𝑡
𝑄𝐴𝐿𝐼𝑡−1
=
𝑖
ℎ𝑖,𝑡
ℎ𝑖,𝑡−1
𝑤𝑖,𝑡 +𝑤𝑖,𝑡−1
2
, 𝑤𝑖,𝑡
𝑒𝑖,𝑡
=
𝑖 𝑒𝑖,𝑡
 National Accounts aggregates benchmarked
hours worked and compensation of employees
Eurostat
QALI methodology (2)
 Workers groups
• Age: 3 categories
• 15-29 years old; 30-49 years old;50 and more
• Skill (using proxy of the highest educational level
attained): 3 categories
• Low (ISCED97 0-2, <lower secondary); Medium (ISCED97 3-4, upper and
post secondary); High (ISCED97 5-6, tertiary)
• Industry breakdown: 10 or 21
• Professional status (employee, self-employed)
• Gender
Eurostat
QALI data sources (1)
LFS, Labour Force Survey
•
•
•
•
•
•
•
2002 to 2014, annual data
Reliability limits
Country or residence /country of work (NA)
Possible revisions due to census updates
Gaps: max 5.6% skill/A21 for hours worked; QALI: up to 12.8%
Hours % by Age and skill and industry
Conversion method for activity classification change
Eurostat
QALI data sources (2)
SES, Structural Earnings Survey
•
•
•
•
•
•
4 yearly survey: 2002, 2006, 2010
Confidentiality
Imputations (up to 4.2% for skill and A21 for QALI)
interpolation procedure for each country’s earnings, year, industry and group
(age/skill)
Earnings % by skill, age and industry
Conversions for activity classification
EU SILC Statistics on Income and Living Conditions
•
•
•
Annual earnings for activity A, Agriculture
Unreliability, confidential data
Gaps: up to 19% for earnings data (A10 and skill) – 56% of QALI
Eurostat
QALI data sources (3)
National Accounts Data as benchmark
• Hours worked by industry breakdown
Imputation for consistency
Top down and bottom-up -> full set
• Compensation of employees
• LFS and SES data's contribution to split up totals from
National Accounts
Eurostat
Data source LFS flags
Share of very unreliable (H) and unreliable (u) QALI results for each aggregation level and
(single/combined) categories of quality based on LFS microdata
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
T
Status/Skill/Age/Sex H
A10
Skill/Age H
A21
Skill H
Eurostat
A38
Status/Skill/Age/Sex H+u
A64
Skill/Age H+u
Skill H+u
Dissemination constraints
TOT
A*10
A*21
Skill/Age
MS
EU/EA


X

X

Skill
MS
EU/EA




6 MS

Age
MS
EU/EA




12 MS

LFS
SILC
Vu
ID1
ID4
U
ID2
ID5
C
ID3
ID6
n.a.
ID9
HW
ID10/ID12
D1
ID11/ID13
Table 5. Targeted QALI results
6MS: FR, DE, (NL), ES, IT, UK
12MS: 6 MS + AT, BE, CZ, PL, (SI), SE
SES
ID7
ID8
Eurostat
QALI
Vu
ID1
U
ID2, ID9, ID10, ID12
C
ID5, ID7 or LFS freq <3
n.a.
ID9, ID10, ID12, ID6,
ID8, ID11, ID13
Results for euro area
Hours worked
15-29 years
30-49 years
22%
Earnings
50+ years
15-29 years
30-49 years
50+ years
30%
24%
53%
61%
22%
16%
15%
11%
2002
2014
2002
2014
57%
Low
24%
Medium
Low
High
23%
33%
44%
2002
55%
Medium
High
40%
53%
46%
33%
34%
46%
20%
23%
13%
2014
2002
2014
Eurostat
Results for European Union
Hours worked
15-29 years
30-49 years
22%
50+ years
15-29 years
17%
2002
2014
Medium
11%
2002
2014
High
34%
23%
46%
2002
Medium
High
40%
53%
49%
30%
55%
15%
Low
25%
50+ years
34%
61%
53%
22%
30-49 years
24%
30%
56%
Low
Earnings
46%
17%
2014
Eurostat
23%
13%
2002
2014
Results, QALI Euro area
Unadjusted Index (hours)
Quality
QALI_skill
3%
2%
1%
0%
-1%
-2%
-3%
-4%
2003
2004
2005
2006
2007
2008
2009
Eurostat
2010
2011
2012
2013
2014
Results, QALI European Union
Unadjusted Index (hours)
Quality
QALI_skill
2.5%
1.5%
0.5%
-0.5%
-1.5%
-2.5%
-3.5%
2009
2010
2011
2012
2013
2014
Eurostat
2015
2000
2001
2002
2003
2004
European consolidated SUIOTs
• steps to treat intra-EU trade flows to get the
consolidated EU28 Use table.
• Benchmark to macro-aggregates totals in line
with GDP
• Embodied employment in exports
Eurostat
Embodied employment in exports
EU28
0%
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Products of agriculture, forestry and fishing
Industrial products (except construction works)
Constructions and construction works
Wholesale and retail trade; transportation and storage;
accommodation and food services
Information and communication services
Financial and insurance services
Real estate services
Professional, scientific and technical services; administrative
and support services
Public administration, defence, education, human health and
social work services
Arts, entertainment and recreation; other services; services of
household and extra-territorial organizations and bodies
High
Medium
Eurostat
Low
Thank you for your attention
Eurostat