This project is funded by the European Commission, Research Directorate General as part of the 7 th 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
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 series 1995 -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 sectorspecific 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 Y K L L* 1 Austria X X Bulgaria X X Australia X X 2 Belgium X X Cyprus X X Brazil X X 3 Denmark X X Czech Rep X X Canada X X 4 Finland X X Estonia X X China X X 5 France X X Hungary X X India X X 6 Germany X X Latvia X X Indonesia X X 7 Greece X X Lithuania X X Japan X X 8 Ireland X X Malta X X Korea X X 9 Italy X X Poland X X Mexico X X 10 Luxembourg X X Romania X X Russia X X 11 Netherlands X X Slovak Rep X X X Taiwan X X 12 Portugal X X Slovenia X X Turkey X X 13 Spain X X USA X X 14 Sweden X X 15 UK X X Y =output and value added, current and constant K =Capital formation L =Employment L* =Employment by skill (low, medium, high) L* Non EU 13
WIOD – World KLEMS ØD 5. 2 (month of delivery: 12): Preliminary KLEMS database for WIOD countries not covered in EU KLEMS Ø Delivered employment quanties for all WIOD countries Ø Currently working and waiting on labor by skill type and capital estimates for countries not yet covered in EU KLEMS database Ø To this end we have set up the WORLD KLEMS consortium Ø First conference August 2010 at Harvard, Cambridge included national statisticians and researchers from many countries (90 participants). Ø Work is currently under way by dedicated research groups in cooperation with NSIs
World KLEMS (WIOD relevant) ØUS: Jorgenson and associates (Harvard) with BEA/BLS ØCanada: Stats Can ØAustralia: Stats Australia ØJapan: Fukao and associates (Hitotsubashi) ØKorea: Pyo and associates (Seoul Nat Uni) ØChina: Harry Wu group (Conference Board, Hitotsubashi) + NSI ØIndia: Das and associates (ICRIER, Delhi) ØBrazil: Hofman and associates (ECLAC) with NSI and local groups ØMexico: Hofman and associates (ECLAC) with NSI ØRussia: Groningen in cooperation with Rossstat ØIndonesia/Taiwan: Groningen with Khuong Vu (Singapore Nat Uni) ØTurkey: Groningen with Conference Board
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
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