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- W981550108 abstract "Peter B. Meyer Is a research economist, and Michael J. Harper Is the chief of the Division of Productivity Research and Program Development, Office of Productivity and Technology, Bureau of Labor Statistics. E-mail: Meyer.Peter®bls.gov Harper.Mlke@bls.gov abor productivity growth supports long term improvements in standards of living. M ^Productivity can increase because of in vestments in equipment and structures, a more educated and experienced workforce, and im provements in technology. The BLS multifactor productivity (mfp) measures are designed to iso late the effects on labor productivity of capital growth and of the changing composition of the labor force. These input effects are reported sepa rately, and multifactor productivity growth rep resents the unexplained portion of labor produc tivity growth. The multifactor productivity measures are de signed along the lines of Solow's method of growth accounting.1 Substantively, multifactor productiv ity change results from joint influences on eco nomic output of technological change; efficiency improvements (for example, because of better transportation or communications); returns to scale; reallocation of resources (such as shifts of labor among industries); and other factors, after allow ing for the effects of capital and labor growth. An example of a source of efficiency improvement is the construction of the interstate highway system. It has been argued that this raised multifactor pro ductivity and, analogously, that the Internet and the World Wide Web have done so. Multifactor productivity change is defined and measured as the growth rate of output minus the growth rate of measured inputs. Let Fbe output, L be a measure of labor inputs, and A be a mea sure of capital services inputs. Define 5 to be the share of income paid to labor, and assume that the remaining fraction (1-s) is paid to capital. Delta (A) means the change since the previous year, so AY/Y is the annual growth rate of output. bls measures the quantities on the right side of the equation below to calculate the growth rate of multifactor productivity." @default.
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- W981550108 date "2005-01-01" @default.
- W981550108 modified "2023-09-26" @default.
- W981550108 title "Preliminary estimates of multifactor productivity growth" @default.
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