For the years 2011-2015, if output per person in the private sector grew 1.9 percent, capital intensity grew 1.1 percent, and total factor productivity grew 0.2 percent, what was the growth rate of labor composition?

Question

Quizplus · Accepted Answer

The growth rate of labor composition can be calculated using the growth accounting equation, which states that the growth rate of output per person (1.9%) equals the growth rate of total factor productivity (0.2%) plus the growth rate of capital intensity (1.1%) plus the growth rate of labor composition. Therefore, 1.9% = 0.2% + 1.1% + growth rate of labor composition. Solving for the growth rate of labor composition gives 1.9% - 0.2% - 1.1% = 0.6%.

For the Years 2011-2015, If Output Per Person in the Private