Annual Labour Income Share (Real ULC)
< < >-< OECD.Stat
Annual Labour Income Share (Real ULC)Key statistical conceptThe annual labour income share is calculated for this database as total labour costs divided by nominal output. The term labour income share is used as the total labour costs measure relates to compensation of employees adjusted for the self employed and thus essentially relates to labour income.
The division of total labour costs by nominal output is sometimes also referred to as a real unit labour cost - as it is equivalent to a deflated unit labour cost where the deflator used is the GDP implicit price deflator for the economic activity (i.e. sector) concerned.
Recommended uses and limitationsThe adjustment for the self employed made in the calculation of total labour costs assumes that labour compensation per hour (or per person if hours data is not available) is equivalent for the self employed and employees of businesses. This assumption may be more or less valid across different countries and economic activities and thus can affect the reliability (and thus comparability) of the resulting labour income share ratios.