ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Isha ChawlaSubscribe to Isha Chawla

A Note on the Methodology for Measuring Labour Input from Company Databases

Studies on firm-level productivity based on Indian corporate data usually make their estimates on the number of employees using the Annual Survey of Industries or the compensation to employees approach, with the predicted employment approach being another relatively new methodology. This note compares the different approaches and finds that no particular one dominates the rest in yielding estimates of labour coefficients that lie close to those in the actual data. The results of the analysis highlight the strengths and weaknesses of each approach.
Back to Top