Incorporating Labour accounts in National accounts

Presentation of work from National Accounts, Statistics

Denmark

Overview

• Labour accounts

• National accounts

• NA corrections (batch?)

• Does it matter? – Example from growth in labour productivity

Labour accounts

• Sources– Register of employment statistics

• Number of jobs in year

– Register of wage statistics• Working hours per job

– Labour force survey• Correction for selfemployed, assisting spouse, and

seasonality.

National accounts

• Before labour accounts– Hours did not exist– Productivity study used some information

• After labour accounts– labour accounts, 1995-2003– Before 1995 growth rates in previous

productivity study used.

Batch

• These corrections are at employement level• batch 1

– More details in industry structure• batch 2

– Not stated is distributed• batch 3

– Some industries are purely public (12). Private employees relocated to other industries.

• batch 4– Sector specific wage compensation of general

government is from division of public finances.

Batch

• Batch 5– Commercial activity. Relocation of industry to

wholesale

• Batch 6– Relocation of industry to other activity

• Batch 7– Relocate selfemployed in sectors without production

value in the household sector.

• Batch 8– Move selfemployed to employee status in some

partnerships within industry

batch

• Batch 9– Alternative sources

• Air transport, construction, agriculture, insurance

• Batch 10– Hidden economy

• Adjustment of hours• Adjustment of heads

• Batch 11– Residence

Table 1: Transition from labour accounts to national accounts, employmentEmployees Self-employed Total

----------- Persons ------------labour account 2524463 205786 2730249Batch 1 0 0 0Batch 2 0 0 0Batch 3 0 0 0Batch 4 14792 0 14792Batch 5 0 0 0Batch 6 0 0 0Batch 7 0 0 0Batch 8 25961 -25961 0Batch 9 -9437 -2142 -11579Batch 10 17880 0 17880Batch 11 25658 0 25658Manual corrections 6050 1902 7952National accounts 2605367 179585 2784952Source: Based on numbers in Heurlén and Sørensen (2005)

Industry results

• Comments to table 2– Restaurants (relocation of integrated

canteens) (batch 6)– Computer and software relocate to wholesale

(batch 5)– Increase in hours from hidden economy.– Water transport (residence)

– Some larger components which we do not see

Table 2: Corrections at the industry level, 2000, top 25labour account Neutral correction Level correction

------------------1000 hours ----------------Private households with employed persons 1296 -66 15042Refuse collection and sanitation 26072 -11 -20406Maintenance and repair of Motor vehicles 34138 15427 -6220Steam and hot water supply 3262 -8 1887Retail sale of automative fuel 14176 -5305 2863Collection and distribution of water 3503 -10 1296Sewerage removal and purifying plants 3925 -10 1446Water transport 26962 -58 7821Computer activities exc. Software consultancy and supply 14577 -2191 1947Manufacturing of leather and footwear 2524 120 -581Administration of public sectors exc. For business 32295 0 8883Software Consultancy and supply 52265 -5811 7900Hospital activities 38458 0 10063Restaurants 86705 13046 7701Regulaton of and contribution to more efficient operation of business 18558 0 3888Sale of motor vehicles and motorcycles 57274 -9015 -398Building - cleaning activities 65953 -169 -9200Manufacturing of industrial gases and inorganic basic chemicals 1199 19 -150Production and distribution of electricity 15532 -21 -1978Manufacturing of glass and ceramic goods n.e.c. 10689 -13 -1310Air transport 19624 -655 -1753Life insurance and pension funding 3442 -5 415Bakers shop 16204 -1017 667Non life insurance 21349 -29 2093Manufacture of sugar 1864 22 -160Retail trade of food 81037 6187 1693Total 4271882 2352 6198Source: based on numbers in Heurlén and Sørensen (2005)

Growth in labour productivity

• Comments to table 3– Year to year change in aggregate can be

quite large– Almost same picture as in table 2. However

cross section hides important differences.– Discrepancies not alarming big. – Sectoral analysis should be careful with

industries with functional definitions of NA.

Table 3: Annual growth in labour productivity, geometric averages 1996-2003, top 25LA NA Difference--- Percentage --- ---- Percentage points ----

Manufacturing of basic iron and steel and of ferro alloys 17,8 28,9 11,1Extraction of oil and natural gas -3,4 7,0 10,4Private households with employed persons -11,9 -3,7 8,2Sewage removal and purifying plants -7,9 -0,4 7,5Manufacture of sugar 8,3 14,8 6,5Manufacture and distribution of gas -4,1 2,0 6,1Administration of public sectors exc. For business 3,8 -2,3 -6,1Manufacture of refined petroleum products -12,4 -17,6 -5,2Steam and hot water supply 0,2 4,3 4,1Refuse collection and sanitation -4,8 -8,8 -4,0Water transport 19,8 16,7 -3,1Manufacture of office machinery and computers 27,3 24,6 -2,7Building and repairing af ships and boats 3,8 1,2 -2,6Manufacture of diary products 10,8 8,2 -2,6Retail sale of automative fuel -5,3 -2,8 2,5Life insurance and pension funding 2,4 4,8 2,4First processing of iron and steel 3,4 5,7 2,3Hotels 0,6 -1,7 -2,3Publishing activities, excluding newspapers -0,7 -2,7 -2,0Computer activities exc. Software consultancy and supply 3,2 5,0 1,8Air transport 5,4 3,6 -1,8Manufaturing of plastic and synthetic rubber 18,3 16,8 -1,5Manufacture of radio and communication equipment 4,7 6,2 1,5Software consultancy and supply 10,6 9,4 -1,2Extraction of gravel and clay etc. 4,4 3,3 -1,1Refuse dumps and refuse disposal -1,7 -2,9 -1,2Maintenance and repair of motor vehicles -3,4 -4,5 -1,1Total 0,9 0,7 0,2Source: Based on revised numbers in Heurlén and Sørensen (2005)