This table provides metadata for the actual indicator available from Ghana statistics closest to the corresponding global SDG indicator. Please note that even when the global SDG indicator is fully available from Ghana statistics, this table should be consulted for information on national methodology and other Ghana-specific metadata information.
| Goal |
Goal 10: Reduce inequality within and among countries |
|---|---|
| Target |
Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality |
| Indicator |
Indicator 10.4.1: Labour share of GDP |
| Related indicators |
8.2.1 8.5.1 |
| Definition and concepts |
Definition: Labour share of Gross Domestic Product (GDP) is the total compensation of employees and the labour income of the self-employed given as a percent of GDP, which is a measure of total output. It provides information about the relative share of output which accrues to workers as compared with the share that accrues to capital in the production process for a given reference period. Concepts: Compensation of employees is the total in-cash or in-kind remuneration payable to the employee by the enterprise for the work performed by the employee during the accounting period. Gross domestic product (GDP) represents the market value of all final goods and services produced during a specific time period (for the purposes of this indicator, one year) in a country's territory. Persons in employment are defined as all those persons of working age who, during a short reference period (one week), were engaged in any activity to produce goods or provide services for pay or profit. Employees are all those workers who hold the type of job defined as paid employment jobs, that is, jobs where the incumbents hold explicit or implicit employment contracts giving them a basic remuneration not directly dependent on the revenue of the unit for which they work. |
| Unit of measure |
Percentage (%) |
| Data sources |
Ghana Living Standards Survey (GLSS) Round 6 Labour Force Report, 2014 Ghana Living Standards Survey (GLSS) Round 7, 2017 |
| Data providers |
Ghana Statistical Service (GSS) |
| Rationale |
In order to interpret this indicator effectively, it is important to consider it together with economic growth trends. The share of labour compensation in national output can highlight the extent to which economic growth translates into higher incomes for employees over time (and/or higher earnings for the self-employed). In periods of economic recession, the labour income share provides an indication of the extent to which falling output reduces labour income relative to profits. If labour income falls at a greater rate than profits, the labour income share will be expected to fall. By contrast, if there is a sharper decline in profits than in labour income, the share will rise. For any given level of GDP and profits, the labour income share can fall as a result of falling wages, falling earnings of the self-employed, changes in the composition of employment by income or a combination of these. Increased production and GDP often lead to improved living standards of individuals in the economy, but this will depend on the distribution of real income and public policy among other factors. |
| Data availability and disaggregation |
There is no available disaggregation for this indicator. |
| Metadata last updated | Nov 13, 2022 |