1. Standardization Petra Petrovics Ph.D. Student

2. Standardization • Tocompareaggregateintensitivityratios • 2 aggregateintensitivityratios (grand means) candiffer, because of: • thedifferenceingroupratios (groupmeans) • thedifferenceinthestructure of the 2 populations (composition) • Aim: toseparatethese 2 factors • Differencedecomposition • Ratio decomposition

4. Difference decomposition Where: s – standard data k- (R1-R0)

5. Ratio decomposition Where: i: R1 / R0

6. Notes • I’=1 • The productivity (R) didn’tchange • I”=1 • The composition (B) didn’ change • I’=X% • Whentheproductivity(R) changeby X% in EVERY group

7. Exercise 1 (Book:p195/87. )

9. Exercise 2 (Book:p197/90. ) • Here is a datasetaboutthewages of theemployeesof an agriculturalcompany, dividedintothecompany’s sites. • Excercise • Calculatethechange of oneperson’s averagewageforeach site! • Calculatethewage per capitaforthewholecompanyinbothyears! • Determinethechange of averagewage per capitainthewholecompany! • Examinethefactors and theireffectonthechange of averagewages. • Explainyourresults!

10. Average wage: Notation of data: Change of average wage:

12. The average wages increased by 5.1 % from 2007 to 2008. There are two reasons for this change. One of them is the change of average wages in the different groups. Because of this the common average wage increased by 7.1%. The other factor is the change of the groups' workforce composition which made the common average wages 1.8 % lower.

13. Exercise 3 (Book:p197/91. ) • The following table contains the the construction industry investments of „I Collapse Ltd.”: • Excercise: • How did the value of investments change in Demolishtown in the examined period? • How did the investment per capita change in each of the two cities? • What kind of factors had an effect on the investment per capita rate of the company? How did they change the value?

14. Change in the value of investment: • Change in the investment per capita:

16. Exercise 4 (Book:p200/96. ) • Weknowthefollowingdataabout a company’sproductionvalue and productivity. • The physicalworkers’ productivityincreasedby 5.74% onaverageeachyear. The company has 107 more employeesin 1995 thenit had in 1991. • Excercise: • Fillinthetable! • Calculate and analysethefactorsandtheireffectonthechange of productivity!

17. Productivity of physical workers. • x=85 (V1 intellectual)

18. Exercise 5 (Book:p204/106. ) • In an assembling factory from 1993 to 1994 the average productivity of skilled workers decreased from 5 min/person to 4 min/person, the average productivity of unskilled workers decreased from 6 min/person to 4.8 min/person. The change in the ratio of skilled/unskilled workers increased the average work time by 5%. In 1994 70% of the workers were skilled, the rest were unskilled. • Excercise: • Calculate the change of average productivity!

20. Exercise 6 (Book:p205/107. ) • The total amount of wages paid by a company increased by 11% from 1995 to 1996. The number of workers has increased by 2 %. The wages of skilled and unskilled increased by 8% both. • Excercise: • How did the ratio of skilled and unskilled workers change? How did the company’s average wage increase?

22. Exercise 7 (Book:p207/114.) • The number of a company’s physical workers decreased by 2% in each class (skilled, unskilled, handymen), while the total amount of wages paid to them increased by 18%. • Excercise: • Analyse the change of the physical workers’ average wage!

24. Exercise 8 (Book:p201/98.) • PROFORG Inc. Buys up wheat. • Excercise: • Fill in the table! • Compare the average buy-up prices in the two periods. Analyse the factors that had a changing effect on the price.

25. Exercise 9 (Book:p195/86.)

27. Exercise 10 (Book:p195/86.) • Weknowthefollowingdataabout a company’sphysical and intellectualworkers: • Excercise! • Fillinthetable! • Whatfactorsinwhatways had an effectonthedifferencebetweentheaveragewages of men and women?

28. Thanks for your attention!