Quality-adjusted labour input: estimates for 1997 to 2007

Updates previous estimates and produces results for the whole economy, market sector and six broad industry groupsONS headline productivity series, Gross Value Added per unit of labour, are based on the concept of ‘labour productivity’, with labour input measured in terms of hours, jobs or workers. The drawback of this approach is the implicit assumption that each unit of labour is homogenous – one worker is the same as another, or an hour worked in one sector the same as in any other. However, workers are clearly not the same; they each have an array of different skills and characteristics. Therefore it is possible to produce a more complete measure of labour input based on the quality of the workforce as well as the volume of its input. Qualityadjusted labour input (QALI) does this by differentiating between hours worked according to workers’ qualifi cations, experience, gender and industry. QALI is also used alongside the volume index of capital services in the production of multi-factor productivity estimates. This article updates QALI estimates for 1997 to 2006 and extends the series to 2007. Results have been produced for the whole economy, the market sector and for six broad sectors. Economic & Labour Market Review (2009) 3, 62–66; doi:10.1057/elmr.2009.10