Glossary:Wage-adjusted labour productivity ratio
The wage-adjusted labour productivity ratio is an indicator of labour productivity that is derived from structural business statistics. It is defined as value added divided by personnel costs which is subsequently adjusted by the share of paid employees in the total number of persons employed, or more simply, apparent labour productivity divided by average personnel costs (expressed as a ratio in percentage terms). Given that this indicator is based on expenditure for labour input rather than a headcount of labour input, it is more relevant for comparisons across activities (or countries) with very different incidences of part-time employment or self-employment.