Finally, the productivity estimates from the eight industries are used to compute an
industry shift effect that will be positive if labor is growing most rapidly in industries with higher
wage rates. The wage rate is used as a proxy for the productivity of workers in each sector, and
they compute a measure of the labor input in efficiency units. They find that the shift effect
added almost one percent per year to the growth of output. Since this is an partial alternative to
their quality adjustment for labor in the aggregate, the residual estimate of TFP growth is only a
few tenths lower than the values reported in table 6.