--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-49/efficiency-adjustment-of-hours-worked-two-possible-modifications-of-a-jorgensen-production-model/" title: "Efficiency Adjustment of Hours Worked: Two Possible Modifications of a Jorgensen Production Model" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T08:15:34+00:00" date_modified: "2026-07-17T10:15:22+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Fall 2025" ipm_keyword: - "capital stock" - "efficiency adjustment" - "Fraumeni" - "hours worked" - "Jorgenson" - "labour input" - "PIAAC" - "TFP" - "U.S." - "vintage effects" ipm_research_theme: - "Measurement and methodology" ipm_country_focus: - "United States" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # Efficiency Adjustment of Hours Worked: Two Possible Modifications of a Jorgensen Production Model Canonical URL: https://csls.ca/ipm-archive/ipm-issue-49/efficiency-adjustment-of-hours-worked-two-possible-modifications-of-a-jorgensen-production-model/ # Efficiency Adjustment of Hours Worked: Two Possible Modifications of a Jorgensen Production Model [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-49-5-Fraumeni.pdf) Cite this article × Cite this article as: Fraumeni, Barbara. 2025. “Efficiency Adjustment of Hours Worked: Two Possible Modifications of a Jorgensen Production Model.” International Productivity Monitor, No. 49 (Fall 2025): 103–115. https://csls.ca/ipm-archive/ipm-issue-49/efficiency-adjustment-of-hours-worked-two-possible-modifications-of-a-jorgensen-production-model/ ## Author: - Barbara Fraumeni Muskie School of Public Service, University of Southern Maine ## IPM Issue 49 Fall 2025 pp. 103–115 ## Related IPM articles [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Labour Productivity as a Measure of Technological Change Ulrich Kohli Fall 2025 | IPM Issue 49 | pp. 64–81](https://csls.ca/ipm-archive/ipm-issue-49/labour-productivity-as-a-measure-of-technological-change/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [IPM Issue 49 Editors’ Overview Andrew Sharpe, Bart van Ark, Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-49/) [Online Supplementary Material: UK Regional Productivity Data Fokke Reitze Gouma, Philip McCann, Raquel Ortega-Argilés Spring 2025 | IPM Issue 48 | pp. 15–19](https://csls.ca/ipm-archive/ipm-issue-48/online-supplementary-material-uk-regional-productivity-data/) [The UK Productivity Slowdown: A Review of Timing, Magnitude, and Drivers Josh Martin Spring 2025 | IPM Issue 48 | pp. 1–34](https://csls.ca/ipm-archive/ipm-issue-48/the-uk-productivity-slowdown-a-review-of-timing-magnitude-and-drivers/) [Appendix: UK Productivity Growth Rates Across Data Vintages and Studies Josh Martin Spring 2025 | IPM Issue 48 | pp. 65–73](https://csls.ca/ipm-archive/ipm-issue-48/appendix-uk-productivity-growth-rates-across-data-vintages-and-studies/) [Opportunities and Risks of Artificial Intelligence for Productivity Francesco Filippucci, Peter Gal, Katharina Laengle, Matthias Schief, Filiz Unsal Spring 2025 | IPM Issue 48 | pp. 1–26](https://csls.ca/ipm-archive/ipm-issue-48/opportunities-and-risks-of-artificial-intelligence-for-productivity/) [Data Appendix: International Comparison of UK Productivity John Van Reenen, Xuyi Yang Spring 2024 | IPM Issue 46 | pp. 38–82](https://csls.ca/ipm-archive/ipm-issue-46/data-appendix-international-comparison-of-uk-productivity/) [Appendix: Investment/Value Added Shares and Capital Stock Growth by Country Bart van Ark, Klaas de Vries, Abdul Erumban Spring 2024 | IPM Issue 46 | pp. 66–82](https://csls.ca/ipm-archive/ipm-issue-46/appendix-investment-value-added-shares-and-capital-stock-growth-by-country/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn This article focuses on two features of the Jorgenson model of production, which is commonly used in productivity research. First, that capital stock is efficiency adjusted in that model, but hours are not. If hours are efficiency adjusted, as proposed in this article, the efficiency per hour of a much younger male college degree worker in a specific year, say 25 years old in 1980, may be different than that of a 50 year old college degree worker in that same year. Second, this article asks whether the assumption of no vitnage effects in the Jorgenson model is valid. In such a model, it is assumed that at the lowest level of detail, the efficiency of a particular type of worker as measured by quality, (marginal product, or labour input divided by hours worked), is constant over time. With no vintage effects, the efficiency of a 50 year old male with a college degree, is the same in 1980 and 2000. Hours are adjusted for efficiency by age using OECD’s 2012 Programme for the International Assessment of Adult Competencies (PIAAC). Cet article se concentre sur deux caractéristiques du modèle de production de Jorgenson, couramment utilisé dans la recherche sur la productivité. Premièrement, le stock de capital est ajusté en fonction de l’efficience dans ce modèle, mais pas les heures. Si les heures sont ajustées en fonction de l’efficience, comme le propose cet article, l’efficience par heure d’un jeune homme diplômé universitaire dans une année donnée peut être différente de celle d’un homme plus âgé avec le même diplôme la même année. Deuxièmement, cet article se demande si l’hypothèse d’absence d’effets de millésime dans le modèle de Jorgenson est valide. L’article explore l’impact de ces deux modifications méthodologiques sur les estimations de productivité. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-49-5-Fraumeni.pdf)