Labour inputs in public sector productivity: Methods, issues and data

Abstract

This article provides an overview of the methodology currently used in the production of labour input measures, with a specific focus on how these affect estimates of public service productivity published by the UK Centre for the Measurement of Government Activity (UKCeMGA) in the Office for National Statistics (ONS). It reviews ongoing work to improve labour input measures within the context of both the literature and empirical work as a way of highlighting key conceptual and practical issues with existing methods and data. It provides an update of the new education direct labour input measure and an update on the implementation of the Atkinson review recommendations on the measurement of labour inputs to production.