Value-added in non-financial corporations

Value-added in non-financial corporations presents the share between labour and capital of value added for non-financial corporations and the change in the shares between selected time periods. The indicator is presented net of depreciation because depreciation is a cost of production – that is, it reflects the amount that needs to be set aside to replace fixed assets as they are used up in the production process. As such, this indicator provides a better picture of the returns to capital to maintain the same level of production in the future. This indicator is measured in percentage of net value added. The non-financial corporation sector includes all private and public enterprises that produce goods and /or provide non-financial services to the markets. In some countries, it also include quasi-corporations consisting of sole proprietors and unincorporated partnerships. This is an issue for international comparison as the sectorial coverage may impact indicators one way or the other. The indicator is calculated by dividing the sum of compensation of employees and operating surplus by the net value added of the non-financial sector. All OECD countries compile their data according to the 2008 System of National Accounts (SNA).

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Keywords: non-financial corporations, value added