Real wages, inflation, and labor productivity: Evidences from Bulgaria and Romania

Dritsaki, Chaido

doi:10.18533/jefs.v4i05.253

Cited by 13 publications

(12 citation statements)

References 43 publications

(38 reference statements)

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“…Other reason to offer higher wages is to minimize the labor turnover, so that firms can retain skilled and experience employees than hiring newly and unskilled employees. This finding is consistent with the findings of Jain (2019), Dritsaki (2016), Tang (2014), Kumar et al (2012), Narayan andSmyth (2009), andYusof (2008). Human capital investment shows a positive relationship with labor productivity.…”

Section: Results and Discussion Unit Root Testssupporting

confidence: 93%

Factors Affecting Labor Productivity: An Empirical Evidence from Pakistan

2021

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Labor productivity is important as it is the major factor determining nations' living standards. This study analyzes the factors affecting labor productivity in Pakistan using time series data. ARDL model is applied for estimation of the long run relationship of variables for the period 1981-2018. Data have been taken from the Handbook of Statistics of State Bank of Pakistan and various economic surveys of Pakistan. The findings show that wages, human capital investment, labor force participation, and inflation significantly affect labor productivity. The results indicate that wage rate has a positive effect on labor productivity, and human capital investment also is positively related to labor productivity. At the same time, labor force participation and inflation are negatively related to labor productivity. These findings imply that labor productivity can be raised by increasing the wage rate and investing more in human capital. Results are consistent with efficiency wage theory and human capital theory.

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Section: Results and Discussion Unit Root Testssupporting

confidence: 93%

Factors Affecting Labor Productivity: An Empirical Evidence from Pakistan

2021

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“…Based on the empirical model, it explains the unidirectional relationship, which is from minimum wage to inflation. It means an increase in the minimum wage leads to price increases (Dritsaki, 2016;Ladu & Meleddu, 2016). Unfortunately, the government regulation on wage minimum decision has not accommodated the inflation rate.…”

Section: Methodsmentioning

confidence: 99%

“…Besides these several economic variables, behavior perception of economic agents such as expectation and psychological factors also potentially contribute to the inflation rate. Economic growth, money supply, wage, and exchange rate dominate the source of price changes (Bozkurt, 2014;Dritsaki, 2016). The relationship between inflation, economic growth, and wage is possible both in the long run and short run.…”

Section: Introductionmentioning

confidence: 99%

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Determinants of Inflation in the Local Economy

Sriyana

2018

Etikonomi

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This research analyzes the determinants of inflation rate in the local economy. It uses co-integration and vector error correction to capture the long and short run relationship between inflation rate and other economic variables. We find that the determinants of inflation rate in Yogyakarta are minimum wage, economic growth, and monetary variables indicated by BI-rate. More finding, exchange rate also contributes to the price change. This research finds evidence of long-run causality between minimum wage and inflation and unidirectional relationship from wage to inflation in the short run. This finding confirms the proposition of non-neutrality wage on price changes. The inflation rate in the local economy depends not only on the regional indicator but also depends on international changes reflected in the exchange rate. Monetary variable indicated by BI- rate also partially contributes to the price changes at the local level. Overall, the local government has successfully managed the price changes.DOI: 10.15408/etk.v17i1.7146

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“…This fundamental concept relies on the ide that an increase in the real wage can develop productivity. In other words, the real wage corresponds to the productivity of labors (Dritsaki, 2016;Goh, 2009). Many studies, however, have claimed that ensuring a better wage is not an absolute factor that shapes productivity, and vice versa (Strauss & Wohar, 2004).…”

Section: Introductionmentioning

confidence: 99%

Contributing factors of labor productivity in the industrial sector in Indonesia: a comparative study among regions

Arham

Junus

2020

JES

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TIndonesia’s degree of competitiveness in attracting investment is relatively low compared to other ASEAN countries, e.g., Singapore, Malaysia, Thailand, and Vietnam, despite the country’s potential resources. Specifically, low labour productivity in industrial sector led to lower degree of investment competitiveness in Indonesia. Thus, this study aims to examine the transformation of economic structures and factors determining the regional labor productivity in industrial sector in Indonesia. This study employs multiple regression method with panel data approach on 34 provinces in Indonesia from 2014 to 2019. This study suggests that, in general, the decline of agriculture sector share in the Eastern part of Indonesia was greater than the Western part of Indonesia. Furthermore, the composition of labor absorption in Sulawesi, Maluku, Papua, and Kalimantan decline periodically. This research also suggests that the factors leading to improvement of productivity in the Industrial sector in Western part of Indonesia is real wages. Moreover, provision of electricity is the contributing factor and hampers labor productivity in the Eastern part of Indonesia. This study further concluded that supply of electricity is substitutional to labor which result in the decline of productivity

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Real wages, inflation, and labor productivity: Evidences from Bulgaria and Romania

Cited by 13 publications

References 43 publications

Factors Affecting Labor Productivity: An Empirical Evidence from Pakistan

Factors Affecting Labor Productivity: An Empirical Evidence from Pakistan

Determinants of Inflation in the Local Economy

Contributing factors of labor productivity in the industrial sector in Indonesia: a comparative study among regions

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