How Biased Are Measures Of Cyclical Movements In Productivity And Hours?
- Topics:
- Organization
- Tags:
- Hour
- Source:
- Federal Reserve Board
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Overview: The movement of hours worked over the business cycle is an important input into the estimation of many key parameters in macroeconomics. Unfortunately, the available data on hours do not correspond precisely to the concept required for accurate inference. The authors have studied one source of mismeasurement - that the most commonly used source data measure hours paid instead of hours worked - focusing our attention on salaried workers, a group for whom the gap between hours paid and hours worked is likely particularly large. It is shown that the measurement gap varies significantly and positively with changes in labor demand.
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Format: PDF | Size: 88KB | Date: Aug 2005 | Pages: 28
