1. Comparability of Labour Input Measures for Productivity Analysis Olivier Brunet & Eun-Pyo Hong Statistics Directorate OECD 5 November 2009

2. Overview 1.General presentation of the project 2.2009 survey 3.Source of indicators 4.Adjustments to indicators 5.Country changes between the two surveys 6.Future release of indicators 7.Labour productivity 8.Conclusions

3. General presentation of the Project 1. Recommendations from the 2004 WPNA Use NA sources as the denominator of labour productivity Report hours worked for employees and self – employed Countries unable to transmit data should explain reasons why they are unable to do so Countries should transmit metadata quantifying the bridge table between original and NA data 2. First survey in 2004 3. Second survey in 2009

4. 2009 Survey Conducted by the OECD and Eurostat 41 countries surveyed Eurostat: 27 EU countries + ISL, CHE, NOR OECD: AUS, CAN, JPN, KOR, MEX, NZ, TUR, USA and CHL, ISR, RUS Employment & hours worked Sources Adjustments Bridge table

5. Source of indicators Labour Force Survey (LFS) Population Census (PC) Business Survey (BS) Administrative Source (AS)

6. Sources for employees: results Employment LFS: Main (19 countries); Other (9); not use (6) PC: Main (3); Other (3) 2 countries use LFS as the only source LFS as Main and BS/AS as Other (14): for economic territory adjustment (8) for compilation of industry-level data (6) LFS as Main source but Other source when more reliable (4) Countries mainly focused on demand-based sources (9) Countries relying only on demand-based sources (6)

7. Sources for employees: results Hours worked 19 countries use LFS as Main source 4 countries use LFS as Other source 2 countries use BS as Main 1 country uses PC and BS as Main sources 1 country uses AS as Main source 7 countries do not use LFS as a source Contractual or paid hours + absences and overtime Normal weekly hours Potential working days

8. Sources for self-employed: results Employment (34 countries) 23 countries using LFS as Main source and 5 as Other source 10 countries using only LFS 5 countries not using LFS 1 country does not compile any data Hours worked (30 countries) 3 countries do not compile data but compile data for employees 5 countries do not compile data 23 countries using LFS as Main source 1 country using LFS as Other – PC & BS Main sources 3 countries not using LFS at all

9. Adjustments for employment Annual/quarterly averages BEL (-0.1%), FRA (0.2%), IRL (0.2%), ITA (-0.8%), JPN (-1.4%) Persons vs Jobs Positive and non-negligible -> JPN (+3.8%), NZ (+4.2%) Economic territory All countries but 5 make this adjustment LUX (+52.2%), SVK (-8.6%), CHE (+6.7%), ITA (3.5%) Non-observed economy 14 countries RUS (+34.2%), ITA (4.8%), GER (4.7%), HUN (3.6%) Other adjustments Significant impact: SVN (15.1%), USA (2.5%)

10. Adjustments for hours worked Holidays and annual leave Sickness leave Strikes & temporary lay-offs Paid but unreported overtime Unpaid overtime Over/under estimation of self-employed Non-observed economy Other adjustments

11. Adjustments for hours worked: results Positive impact for 12 countries, negative for 9, none for 5 Substantial effects: for countries not using LFS - RUS (41.1%), SVK (-18.8%) for countries using LFS as Other source - FRA (-17.2%), ITA (11.4%) ISR (11.3%) due to numerous foreign workers & non-residents 12 countries apply an adjustment on the non-observed economy 18 countries apply other kinds of adjustments

12. Country changes between the two surveys Employment LFS is now the main source (3) New sources (3) Replacement of sources (1) Data published in terms of persons (3) New adjustments (4) Quarterly estimates (1) Other adjustments (2) Hours worked LFS is now the main source (3) New methodology (1) New adjustments (1) New question in the BS questionnaire (1)

13. Future release of indicators Employment Release of data: TUR (2009) Hours worked Portugal plans to release quarterly estimates at the beginning of 2010 Release of data: TUR (2009), UK (March 2010), SVN (2009) Belgium plans to release self-employed data in 2010

14. Labour productivity

17. Conclusions Real need for harmonised estimates Provide up-to-date methodology Hours worked by industry QALI

18. Thank you for your attention