Estimating labor productivity with input-output tables: an analysis for Brazil in the period 2000-2015

Abstract

Labor productivity is traditionally measured as the ratio between the income generated in the production process, the gross added value (compensation of empolyee + gross operating surplus), and the number of jobs or hours worked. For this purpose, the data published in the Systems of National Accounts (SNA) are adopted, more specifically in the Supply and Use Tables, which disclose data annually. However, there is an alternative data source, The Input-Output Tables (IOT), which present value added data net from trade and transport margins and taxes on products. This work seeks to compare two alternatives in estimating labour productivity, using the added value of the SNA and the IOT. With the IOT it is possible to measure the weight of trade and transport margins and taxes on products in the productivity estimates which it is not possible with SNA data. The text also comments that productivity analysis should be performed by economic activity. Evaluating productivity only with a look at an aggregate indicator does not consider the characteristics of economic activities and the methodologies adopted for its measurement in SNA.