EMPLOYEE LABOUR INPUT AT CONSTANT COMPENSATION

11.35 Definition:

Employee labour input at constant compensation measures current labour inputs valued at the levels of compensation of employee jobs ruling during a selected base period.

11.36 Compensation of employees at current prices divided by employee labour input at constant prices yields an implicit compensation price index comparable with the implicit price index of final uses.

11.37 The purpose of the concept of employee labour input at constant compensation is to express the changes in the composition of the work force, e.g. from lower paid to higher paid workers. To be effective, the analysis should be undertaken on an industry basis.