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On the Tang and Wang Decomposition of Labour Productivity Growth into Sectoral Effects

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Author Info
Diewert, Erwin

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Abstract

Tang and Wang provided a decomposition of economy wide labour productivity into sectoral contribution effects. The present note reworks their methodology to provide a more transparent and simple decomposition. This new decomposition is then related to another decomposition due to Gini and analyzed by Balk. Overall growth in labour productivity is due to three factors: (i) growth in the labour productivity of individual sectors; (ii) changes in real output prices of the sectors and (iii) changes in the allocation of labour across sectors.

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File URL: http://microeconomics.ca/erwin_diewert/dp0806.pdf
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Publisher Info
Paper provided by UBC Department of Economics in its series UBC Departmental Archives with number erwin_diewert-2008-6.

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Length: 10 pages
Date of creation: 16 Apr 2008
Date of revision: 16 Apr 2008
Handle: RePEc:ubc:bricol:erwin_diewert-2008-6

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Related research
Keywords: Index numbers; labour productivity; decompositions of aggregate labour productivity into sectoral effects.;

Find related papers by JEL classification:
C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity

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