In the growth accounting equation
$g _ { Y } = ( 1 / 3 ) \left( g _ { X } - g _ { L } \right) + ( 2 / 3 ) \left( g _ { L Y } - g _ { L } \right) , ( 2 / 3 ) + g _ { A } , z _ { t } ; g _ { A }$
represents the growth rate of labor composition.

Question

In the growth accounting equation
 $g _ { Y } = ( 1 / 3 ) \left( g _ { X } - g _ { L } \right) + ( 2 / 3 ) \left( g _ { L Y } - g _ { L } \right) , ( 2 / 3 ) + g _ { A } , z _ { t } ; g _ { A }$ 
represents the growth rate of labor composition.

Quizplus · Accepted Answer

In the growth accounting equation, $g _ { A }$ typically represents the growth rate of total factor productivity, not the growth rate of labor composition.

In the Growth Accounting Equation Represents the Growth Rate of Labor Composition