Source
Source Contact person/organisation Contact person/organisationIn this dataset, almost all OECD countries compile their data according to 2008 System of National Account (SNA).
The link to the file "ANA_changes.xls" is available for users to provide more information on where OECD countries and non member countries stand regarding the change over the 2008 SNA.
The readers' guide gives general information on the dataset and withheld criteria for this dataset.
Data Characteristics Data Characteristics Other data characteristics Other data characteristicsBecause the corporate sector, particularly non-financial corporations, is the largest contributor to value added, corporations are viewed as the backbone of economic growth in most developed countries. The share of net operating surplus to net value added is a principal measure of a firm's performance in terms of operating profits. In addition, the share of value added that accrues to labour- through compensation of employees- for their participation in the production process can also be calculated. Changes in the share of labour or profits over time is of interest because, for example, if there are gains in productivity but a falling labour share it implies that productivity gains do not translate into increases in pay.
Concepts & Classifications Concepts & Classifications Key statistical concept Key statistical conceptDefinition
This indicator presents the share between labour and capital of value added for both financial and non-financial corporations and the change in the shares between selected time periods. The indicator is presented net of depreciation because depreciation is a cost of production- that is, it reflects the amount that needs to be set aside to replace fixed assets as they are used up in the production process. As such, this indicator provides a better picture of the returns to capital to maintain the same level of production in the future.
Other Aspects Other Aspects Recommended uses and limitations Recommended uses and limitationsComparability
In line with recommendations of the Stiglitz-Sen-Fitoussi report (see "Further Reading") and what is typically done in this publication, it is preferable to use net measures, but international inconsistencies could arise. The consumption of fixed capital is often subject to discussion, mainly because methods for calculating consumption of fixed capital are complex and tend to differ between countries.
A number of differences that affect comparisons of profit shares across countries are to be mentioned. Non-financial corporations' accounts are less harmonised across countries than what is usually assumed. Indeed, in some countries, some unincorporated corporations may be considered as quasi-corporations and integrated within the non-financial corporations' sector in national accounts. Even more importantly, in some countries, for instance Germany and Italy, self-employed workers, conventionally receiving no labour compensation in national accounts, may be allocated to these quasi-corporations. On the contrary, there are no self-employed workers allocated to French and U.S. non-financial corporations. Since data on (self-) employment by institutional sector are usually not available, there is no obvious way to detect this problem and therefore to inform users on the comparability issues.
Net operation profits (also called margin rates, B2NSB1NS11, B2NSB1NS12), labour share (D1SB1NS11, D1SB1NS12) and taxes minus subsidies (D2_D3SB1NS11, D2_D3SB1NS12) form the net value added of (non-)financial corporations.
Russian Federation includes financial corporations until 2007 in non-financial corporations.
In this dataset, almost all OECD countries compile their data according to 2008 System of National Account (SNA).
The link to the file "ANA_changes.xls" is available for users to provide more information on where OECD countries and non member countries stand regarding the change over the 2008 SNA.
The readers' guide gives general information on the dataset and withheld criteria for this dataset.
Because the corporate sector, particularly non-financial corporations, is the largest contributor to value added, corporations are viewed as the backbone of economic growth in most developed countries. The share of net operating surplus to net value added is a principal measure of a firm's performance in terms of operating profits. In addition, the share of value added that accrues to labour- through compensation of employees- for their participation in the production process can also be calculated. Changes in the share of labour or profits over time is of interest because, for example, if there are gains in productivity but a falling labour share it implies that productivity gains do not translate into increases in pay.
Definition
This indicator presents the share between labour and capital of value added for both financial and non-financial corporations and the change in the shares between selected time periods. The indicator is presented net of depreciation because depreciation is a cost of production- that is, it reflects the amount that needs to be set aside to replace fixed assets as they are used up in the production process. As such, this indicator provides a better picture of the returns to capital to maintain the same level of production in the future.
Comparability
In line with recommendations of the Stiglitz-Sen-Fitoussi report (see "Further Reading") and what is typically done in this publication, it is preferable to use net measures, but international inconsistencies could arise. The consumption of fixed capital is often subject to discussion, mainly because methods for calculating consumption of fixed capital are complex and tend to differ between countries.
A number of differences that affect comparisons of profit shares across countries are to be mentioned. Non-financial corporations' accounts are less harmonised across countries than what is usually assumed. Indeed, in some countries, some unincorporated corporations may be considered as quasi-corporations and integrated within the non-financial corporations' sector in national accounts. Even more importantly, in some countries, for instance Germany and Italy, self-employed workers, conventionally receiving no labour compensation in national accounts, may be allocated to these quasi-corporations. On the contrary, there are no self-employed workers allocated to French and U.S. non-financial corporations. Since data on (self-) employment by institutional sector are usually not available, there is no obvious way to detect this problem and therefore to inform users on the comparability issues.
Net operation profits (also called margin rates, B2NSB1NS11, B2NSB1NS12), labour share (D1SB1NS11, D1SB1NS12) and taxes minus subsidies (D2_D3SB1NS11, D2_D3SB1NS12) form the net value added of (non-)financial corporations.
Russian Federation includes financial corporations until 2007 in non-financial corporations.