How is labor productivity derived in the model?
We currently share out nationwide output by each county’s relative wage bill. In versions 5.x we used national output per worker for all industries in each county, i.e., there was no geographic differentiation of labor productivity. Previous versions of the model estimated state-specific productivity values by dividing state employment levels into a derived state-level industry Output figure. This derivation of state Output involved scaling the BEA’s state-level GSP data to equal national value-added by industry, as obtained from the BLS’s input-output table.
