tag:blogger.com,1999:blog-2826531655042170344.post7279396936700599..comments2024-03-26T11:29:52.986+00:00Comments on Economic Incentives: Why isn’t Compensation of Employees increasing in the National Accounts?Seamushttp://www.blogger.com/profile/15679299530222667673noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2826531655042170344.post-15583641435310231192015-12-17T10:09:27.853+00:002015-12-17T10:09:27.853+00:00Compare this CSO series with what is happening to ...Compare this CSO series with what is happening to PRSI.<br /><br />Look at the 2014 DSP annual statistical report here: (http://www.welfare.ie/en/Pages/Annual-Statistical-Information-Reports.aspx). Go to table A7 and look at the first row employer PRSI.<br /><br />Most employment is now class A, and for the majority of employees their employer pays PRSI at a rate of 10.75%. A few are on a lower rate of 8.5%, and it is only slightly progressive. There is essentially no way to legitimately avoid PRSI on labour income the way you can with income tax (reliefs, etc). So the employers' PRSI take should move VERY CLOSELY in line with total employee labour income in the economy. <br /><br />Data for the last few years on employers' PRSI:<br /><br />2011: €5,460<br />2012: €4,995<br />2013: €5,331<br />2014: €5,749<br /><br />So between 2012 and 2014 employers' PRSI increased by 15 per cent, but the CSO series on compensation of employees is essentially flat. Employers' PRSI is actual cash paid every week by tens of thousands of employers on the basis of what they are paying their staff. The CSO series is model-based, subject to revision and is to my knowledge ultimately based on business survey data.<br /><br />It is very difficult to reconcile the two series.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2826531655042170344.post-56865724019956553002015-12-15T06:40:48.797+00:002015-12-15T06:40:48.797+00:00The sectoral accounts are a mystery to all but tho...The sectoral accounts are a mystery to all but those who compile them.Anonymousnoreply@blogger.com