Labour productivity and real wages have risen in trade-exposed regions

2021 ◽  
Keyword(s):  
Labour Productivity ◽  
Real Wages

scholarly journals Real wages, inflation and labour productivity in Australia

2011 ◽  
Vol 44 (23) ◽  
pp. 2945-2954 ◽  
Author(s):  
Saten Kumar ◽  
Don J. Webber ◽  
Geoff Perry
Keyword(s):  
Labour Productivity ◽  
Real Wages

scholarly journals The Impact of Productivity, Investment and Real Wages on Employment Absorption Rate in South Africa

2019 ◽  
Vol 8 (12) ◽  
pp. 330 ◽  
Author(s):  
Thomas Habanabakize ◽  
Daniel Francois Meyer ◽  
Judit Oláh
Keyword(s):  
South Africa ◽  
South African ◽  
Absorption Rate ◽  
Labour Productivity ◽  
Series Data ◽  
The South ◽  
Real Wages ◽  
Long Run ◽  
Investment Spending ◽  
The Impact

Many developing countries are facing high levels of unemployment and most people who are employed are poorly remunerated due to low skills and productivity levels. Although jobs are important, a productive job is even more important, not only for employees, but also for employers. South Africa, being a developing country, is also facing the challenge of dramatically high levels of unemployment. This study’s aim was to examine both the short- and long-term impacts of real wages, labour productivity and investment spending on employment absorption rates in South Africa. To establish the existing relationship between variables, the study applied several econometric approaches, such as an autoregressive distributed lag (ARDL) model, error correction model (ECM) and a Toda–Yamamoto causality analysis on quarterly time series data from 1995Q1 to 2019Q1. The results revealed the existence of both short- and long-run relationships among the variables. While a positive relationship was found between employment absorption, investment spending and labour productivity, it was found that real wages negatively impact on long-run employment absorption rates. Additionally, the short-run analysis indicated that the lagged employment absorption rate influences the current rate of employment. Furthermore, the causality tests indicated that a bi-directional causal relationship exists between employment absorption and investment spending; and a uni-directional relationship between employment and both real wages and labour productivity. Based on the findings, the study recommends increments of investment spending and labour productivity that enables the South African economy to carry out more activities that would require more workers, thereby improving the employment absorption rate. The fact that labour productivity positively impacts the employment absorption rate infers the requirement for quality and skilled workers to be absorbed in the South African labour market. Therefore, labour skills improvements appear to be a prerequisite for productivity enhancement and job creation.

Stylized Facts of Eurolands Business Cycle / Stilisierte Fakten des Konjunkturzyklus in Euroland

1999 ◽  
Vol 219 (5-6) ◽  
Author(s):  
Jörg Döpke
Keyword(s):  
Business Cycle ◽  
Labour Productivity ◽  
Real Wages ◽  
Stylized Facts ◽  
Aggregated Data ◽  
Real Gdp ◽  
Net Exports ◽  
Cyclical Component ◽  
The One

SummaryThe paper presents stylized facts of Euroland’s business cycle using aggregated data. The main results are: The determination of turning points in Euroland’s business cycle is not very sensitive to the detrending method used, although the level of the recent output gap depends on it. Investment, net exports and stock building explain the largest share of the swings in real GDP. The types of expenditures - except for net exports - are pro-cyclical with almost no lag or lead. The results for monetary variables are mixed. Prices are counter-cyclical, whereas labour productivity and real wages are pro-cyclical. The cyclical component of industrial production in all member countries shows a positive and over time increasing correlation coefficient with the one in the rest of Euroland.

scholarly journals Recent Labour Market Trends in the Visegrad Group Countries

2011 ◽  
Vol 14 (2) ◽  
pp. 25-40 ◽  
Author(s):  
Eugeniusz Kwiatkowski
Keyword(s):  
Labour Market ◽  
Economic Crisis ◽  
Labour Productivity ◽  
Working Time ◽  
Labour Markets ◽  
Real Wages ◽  
Unemployment Rates ◽  
Global Economic Crisis ◽  
Market Trends ◽  
Visegrad Group

This study analyses labour market trends that appeared in Poland and other Visegrad Group countries during the global economic crisis, i.e. between 2007 and 2009. Special attention is paid to the changes in employment and unemployment rates that occurred in that period. For the sake of comparison, the labour market indicators are contrasted with average rates for the European Union and the euro area. The presented analysis aims to identify the degree to which unemployment rates and indicators of employment changed in the selected countries in response to the global crisis and to explain why the labour markets in the sample countries reacted differently. It also addresses the changing production volumes and labour market flexibility, particularly towards wages, employment and working time. The above analyses show that the labour markets of the Visegrad Group countries changed significantly during the global economic crisis, i.e. between 2007 and 2009; unemployment rates rose, while volumes and rates of employment decreased. In Poland, the two indicators changed their values relatively insignificantly, but in Hungary, Slovakia and the Czech Republic the changes were quite distinct. In the crisis years, Polish employment fell and unemployment increased to a relatively small degree. Although the main reason for this was the quite favourable growth trend in the Polish GDP, cuts in real wage and working time reductions also played a role. The relatively marked decline in the Hungarian employment is maliny attributed to the strong downward trend in the country’s GDP, but the decline would have probably been much more extensive, if not for the reductions in working time, real wages and labour productivity. The large declines in the Slovak and Czech employment appeared because the countries' GDPs grew smaller while real wages grew bigger. Shorter working hours and limitations on labour productivity that the two countries introduced could not reverse the unfavourable employment trends that occurred during economic downturn.

Analysis of the Labour Productivity Impact on Indicators of Economic Growth at the National, Sub-Federal, and Regional Levels

2021 ◽  
pp. 198-215
Author(s):  
Svetlana A. Samusenko ◽  
Keyword(s):  
Economic Growth ◽  
Productivity Growth ◽  
Labour Productivity ◽  
Federal District ◽  
Krasnoyarsk Krai ◽  
Real Wages ◽  
Labour Productivity Growth ◽  
Per Capita ◽  
Constant Prices

Labour productivity has a predominant impact on economic growth and the rate of postcrisis economic recovery. The increase in labour productivity, in turn, depends on the employed population’s standard of living. A comparative longitude analysis of these indicators’ dynamics reveals the potential for the economic growth of the territory. The historically determined asymmetry in the economic development of Russian regions requires analysis carried out at the national, sub-federal (federal districts), and regional levels. In the study, the author evaluates the dynamics of the per capita gross regional product (GRP), labour productivity, and real wages in constant prices at purchasing power parity for Russia, the Siberian Federal District, and Krasnoyarsk Krai. The results of this analysis allow comparing economic growth and labour productivity growth in Russia and Russian regions with international trends. The author has found that labour productivity per working hour measured in constant prices in Russia, Siberia, and Krasnoyarsk Krai is several times lower than the corresponding indicators of countries leading in productivity and economic growth. The dynamics of per capita GRP and labour productivity, measured both in current and constant prices, is positive. The statistical relationship between labour productivity growth and cyclical processes in the national economy is noted; in the crisis and post-crisis periods, there is outstripping growth in labour productivity due to the mobilization of the workers’ labour potential. The economy of the Siberian Federal District has been characterized by a steady excess of the growth rate of labour productivity over the growth rate of per capita GRP, while in Krasnoyarsk Krai and Russia this trend has manifested since 2014 with the onset of the crisis. This process indicates a change in the mechanisms of economic growth: with the entry into the crisis phase, human labour, as well as its efficiency, becomes the only significant factor in maintaining the stability of national and regional economies. The obtained results also show the depressive impact of a long-term decline in real wages on labour productivity and economic growth during the economic crisis. The structural analysis demonstrates that labour productivity growth has a strong positive effect on economic growth, while the growth of the employment rate has a moderate positive effect. A decline in the share of the working-age population in the demographic structure has a pronounced negative impact on economic growth in the long-term period. The study results can be used in the development of national and regional policies related to stimulating economic growth.

Dynamics of Employment and Economic Growth: A Comparative Study of China and India

2019 ◽  
Vol 10 (3) ◽  
pp. 417-437
Author(s):  
Manjit Sharma ◽  
Pushpak Sharma
Keyword(s):  
Economic Growth ◽  
Labour Productivity ◽  
Poverty Line ◽  
Industrial Sector ◽  
Economic Policies ◽  
Decent Work ◽  
Real Wages ◽  
China And India ◽  
Fixed Capital Formation ◽  
Rapid Pace

In the neo-liberal period, the working class in ‘global south’ has suffered massive retrogression in terms of employment and real wages. Historical experience has proved that capitalism concentrates the wealth at one end of the pole and the vast mass of labouring people at the other. Given the nature of predatory growth, it cannot create enough jobs. The two Asian giants China and India have one of the world’s largest labour forces, which can exploit ‘demographic dividend’ along with a challenge to provide them ‘decent work’. Both countries are growing at a rapid pace in recent decades, which makes it analytically interesting to compare their economies during the period from 1985 to 2017, which comprises the era of liberal economic policies for both countries. The aim of this study is to examine the role of economic growth in determining the employment opportunities in these countries with variables such as gross domestic product (GDP), labour productivity (LP) and gross fixed capital formation (GFCF). This study used time series econometric technique (multiple regression) as well as percentages, figures and average annual growth rates (AAGR). The comparison between China and India divulges that the employment growth rate has fallen in both the countries as the neo-liberal regime strengthened in respective economies. The economic growth has a very meagre role in generating work opportunities. China has done better than India in terms of transferring the low productive workforce in the traditional sector to the modern industrial sector and taking out the workforce from below poverty line.

scholarly journals Some obstacles to wage-led growth

2019 ◽  
Vol 7 (3) ◽  
pp. 308-320 ◽  
Author(s):  
J.E. King
Keyword(s):  
Trade Unions ◽  
Labour Productivity ◽  
Industrial Relations ◽  
Market Regulation ◽  
Real Wages ◽  
Wage Share ◽  
Keynesian Model ◽  
Labour Market Regulation ◽  
Ability And Willingness ◽  
The Welfare State

I begin by providing a non-technical summary of the Post-Keynesian model of wage-led growth. I then summarise the work of microeconomists and industrial relations researchers on the reasons why real wages have failed to keep pace with labour productivity, leading to a steady decline in the wage share of GDP. These include the decline of trade unions, the erosion of the welfare state and (especially) the increasing ability and willingness of employers to evade and avoid labour market regulation. I conclude that these microeconomic problems need to be solved for a macroeconomic strategy of wage-led growth to be possible.

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

2020 ◽  
Vol 8 (3) ◽  
pp. 277-286
Author(s):  
Muhammad Amir Arham ◽  
Stella Junus
Keyword(s):  
Labor Productivity ◽  
Labour Productivity ◽  
Industrial Sector ◽  
Regression Method ◽  
Contributing Factors ◽  
Real Wages ◽  
Agriculture Sector ◽  
Regional Labor ◽  
Multiple Regression Method ◽  
Asean Countries

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

The interconnection between labour productivity and real wages in Azerbaijan

2021 ◽  
pp. 29-35
Author(s):  
E. E. Alakbarov ◽  
A. G. Suleymanova
Keyword(s):  
Growth Rate ◽  
Labor Productivity ◽  
Support Services ◽  
Labour Productivity ◽  
Annual Growth ◽  
Simultaneous Increase ◽  
Annual Growth Rate ◽  
Real Wages ◽  
Average Growth Rate ◽  
Average Growth

The presented article analyses the interconnection between real wages and labor productivity in Azerbaijan in 19 types of economic activity, as well as in the sub-sectors of the manufacturing in the period of 2010–2019. In general, the average annual growth rate of labor productivity in the economy, including mining, construction, professional scientific and technical activities, and entertainment and recreation activities (2010–2019) was negative. The average growth rate of real wages was negative in the construction and activities of administrative and support services. Simultaneously, the average annual growth rates of real wages were compared with labor productivity, and it was determined that the growth rate of labor productivity is approximately proportional to the growth rate of real wages. However, in 2019 real wages exceeded labor productivity which was due to the simultaneous increase in the minimum wage of the country in 2019.

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