[OPE-L:2206] Re: Empirical method

Allin Cottrell (cottrell@wfu.edu)
Tue, 14 May 1996 07:23:48 -0700

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On Mon, 13 May 1996, Michael Williams wrote:

> Allin, could you just confirm how the labour content of the output of each
> industry is calculated.

1. Wage payments on the part of each industry are taken as a proxy for
the direct labour-hours worked in the industry (with or without a
'correction' for inter-industry wage differentials -- it doesn't seem
to make a very big difference).

2. The direct-plus-indirect labour content is then calculated in
the usual way: by an iterative approximation to the Leontief inverse.