The reason for this is that in calculating these contributions to potential growth we give a lower weight to capital than labour. These weights are based on capital’s and labour’s share of income GDP. The weights we have used are 0.29 for capital and 0.71 for labour.
I have done comparative analysis of the staff compensation in the public sector and private sector banks and my finding is that the average compensation of the public sector bank employees is more than that of the private sector bank employees in this country.