Publication: The Labor Content of Exports in South Africa and Botswana: A Preliminary Exploration
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Date
2015-01
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Published
2015-01
Author(s)
Calì, Massimiliano
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Abstract
The LACEX dataset has been recently assembled to compute the (direct and indirect) value of the compensation of employees linked to exports for each sector/country/year. The data has been computed on the basis of a panel of global input-output data spanning intermittent years from 1995 to 2007 from the Global Trade Analysis Project (GTAP). This represents a form of social accounting data - a variation on the social accounting matrix (SAM) where incomes are shown in the rows of the SAM while expenditures are shown in the columns. The structure of the data provides a comprehensive and consistent record of national income accounting relationships between different sectors and regions, including intermediate and final demand linkages. This structure of the dataset allows one to obtain the value added content of final output and exports, including its compensation of employees’ component. That includes both the direct and indirect compensation, based on the backward linkages of each sector with the rest of the economy. In order to obtain these labor value added measures, two intermediate multiplier matrixes need to be calculated. The first is the Leontief inverse matrix, which measures the inputs contained in a unit of final output. This matrix contains both direct and indirect inputs. Next, one needs to calculate a matrix which has the compensation of employees’ shares of total output. Using these two matrixes as multipliers one can obtain the compensation of employees’ shares of exports and final outputs. These shares are also split between skilled and unskilled workers.
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“Calì, Massimiliano; Hollweg, Claire. 2015. The Labor Content of Exports in South Africa and Botswana: A Preliminary Exploration. © World Bank. http://hdl.handle.net/10986/23828 License: CC BY 3.0 IGO.”
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