The diagram below presents two annual measures for 1985 - 2023 period.

1. The total compensation of employees divided by national income for

each year, or (w x L)/Y, where w is hourly wage, L is the number of hours worked and Y is the national income.

2. Unit labour costs (in real terms), for each year.

The data are from The Australian Bureau of Statistics.

In class, we presented the following production function:

Based on the data presented in the figure above and what you learned about the Cobb-Douglas production function:, what is the approximate measure of 𝛼 ?