New BEA-BLS Estimates of the Sources of U.S. Economic Growth between 1987 and 2016

The details of the direct aggregation ap- A main objective of this article is proach are beyond the scope of this to implement the above framework article, but the basic idea is to weight in a way that is consistent with the the industry-level input and MFP U. [...] 11.6 per cent of income in 2009-2016, The bottom portion of table 2 in- reflecting the overall decline in the cludes the nominal value-added shares share of manufacturing in the econ- of each of the major sectors and con- omy. [...] MFP trary, but comparisons of the 2009-- growth in manufacturing was much 2016 period to the 1987-1995 period faster in the 1987-1995 period than in reveal the extent and sources of the the 2009-2016 period. [...] To cantly over the period, so that the reinforce the concepts, for this and the decline in the aggregate labour share subsequent figures, the shares are de- was entirely due to a decline in the fined as compensation to the factor of share of income paid to workers with- production in each sector divided by out a college degree. [...] by industry accounts starting in 1947 The account demonstrates the im- and resolving existing difference in the portance of structural change at the measures of labour composition pro- industry level in the evolution of the duced by BLS for the official MFP es- allocation of income between capital timates and those produced by BEA and labour.