Socio-economic accounts This project is funded by the European Commission, Research Directorate General as part of the 7th Framework Programme, Theme 8: Socio-Economic Sciences and Humanities. Grant Agreement no: 225 281 Socio-economic accounts Abdul A. Erumban Reitze Gouma Marcel P. Timmer Gaaitzen J. de Vries Groningen Growth and Development Centre University of Groningen WIOD Conference, Sevilla May 2011 Th

Outline What is included in the socio-economic accounts? Approach in WIOD for constructing labor by skill type Approach in GTAP for constructing labor by skill type Comparison of approaches: China Current status, World KLEMS initiative and ongoing work

Socio-economic accounts Builds upon the detailed industry-level EU KLEMS database, extension to other countries in WIOD: Gross output and value added (consistent with National Accounts) in current, constant, and international prices Capital formation Labor by skill types (education based) Low-skilled, Medium-skilled, High-skilled

WIOD approach labor by skill type Collection of country-specific data for non-EU countries (that is, those not included in the EU KLEMS database) Internal, intertemporal, and international consistency Output and capital formation from National Accounts (NA) Labor input data from sources consistent to NAs Economic censuses Employment and labor force statistics Households surveys PPPs based on input-output approach (Timmer and Inklaar, 2012)

GTAP approach labor by skill type Previous versions of GTAP were based on wage and employment data from 1970-1992 for 13 countries, with various cross-country assumptions (e.g. no ‘real’ data for China) GTAP version 8 [Weingarden and Tsigas, 2010] Mapping for 150 countries ILO Yearbook of Labor Statistics: employment by industry and occupation (for a single year 2005/2006) ILO October Inquiry: wage by job National data for China and India Matching wage by job with occupations

Comparison example: China GTAP (single year 2002) Employment by occupation for seven industries for 2002 from China Labor Statistical Yearbook [CSLY] (2007) Distribution of education by sector and occupation by education for 2006 from CLSY(2007) Disaggregate some occupations using ILO employment data from 1982 Wage by job from ILO October Inquiry Match jobs with occupations

Comparison example: China WIOD (time series1995-2006) Joint work with: Harry Wu’s group (Hitotsubashi University & The Conference Board) as well as NBS Employment from China Statistical Yearbook, additional detail from sector-specific surveys. First China Economic Census 2004 allows us to include self-employed by industry 2004 Distribution of educational attainment by detailed industry from the First China Economic Census 2004 Trend for other years from CLSY for 2002 onwards, and other sector-specific surveys for earlier years Wage data from various rounds of the China Household Income Project (microdata)

Socio-Economic Accounts - current status   EU 15 Y K L L* EU 12 Non EU 13 1 Austria X Bulgaria Australia 2 Belgium Cyprus Brazil 3 Denmark Czech Rep Canada 4 Finland Estonia China 5 France Hungary India 6 Germany Latvia Indonesia 7 Greece Lithuania Japan 8 Ireland Malta Korea X  9 Italy Poland Mexico 10 Luxembourg Romania Russia 11 Netherlands Slovak Rep Taiwan 12 Portugal Slovenia Turkey 13 Spain USA 14 Sweden 15 UK Y =output and value added, current and constant K =Capital formation L =Employment L* =Employment by skill (low, medium, high)

WIOD – World KLEMS D5.2 (month of delivery: 12): Preliminary KLEMS database for WIOD countries not covered in EU KLEMS Delivered employment quanties for all WIOD countries Currently working and waiting on labor by skill type and capital estimates for countries not yet covered in EU KLEMS database To this end we have set up the WORLD KLEMS consortium First conference August 2010 at Harvard, Cambridge included national statisticians and researchers from many countries (90 participants). Work is currently under way by dedicated research groups in cooperation with NSIs

World KLEMS (WIOD relevant) US: Jorgenson and associates (Harvard) with BEA/BLS Canada: Stats Can Australia: Stats Australia Japan: Fukao and associates (Hitotsubashi) Korea: Pyo and associates (Seoul Nat Uni) China: Harry Wu group (Conference Board, Hitotsubashi) + NSI India: Das and associates (ICRIER, Delhi) Brazil: Hofman and associates (ECLAC) with NSI and local groups Mexico: Hofman and associates (ECLAC) with NSI Russia: Groningen in cooperation with Rossstat Indonesia/Taiwan: Groningen with Khuong Vu (Singapore Nat Uni) Turkey: Groningen with Conference Board

Thank you for your attention Ongoing work China and India: good output and employment estimates, testing and improving labor split by types Early stage: labor split by skill types for Eastern European countries, and several large developing countries (e.g. Brazil, Indonesia, Mexico, and Turkey) Updating output and employment for all countries to 2009 Thank you for your attention