As shown in table 7, the results for the major sectors imply an even smaller role for labor inputs in the industry and services sectors. Instead of measuring labor quality with the product of average years of schooling and average age of workers, the sector equations multiply the number of hours by an average nominal wage rate within the sector (a proxy for quality change).In effect, real output of the sector is related to two measures of the real capital input and an estimate of the nominal wage bill. The result is an extremely low elasticity of output with respect to the labor input of only 0.16 for both industry and services.