Goh, Soo Khoon (2009): Is Productivity Linked To Wages? An Empirical Investigation in Malaysia. Published in: CenPRIS Working Paper Series 102/09 (August 2009)
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This study investigates the relationship between real wages, labor productivity and unemployment in Malaysia at the macroeconomic level, using time-series econometric techniques. The study found a long-term equilibrium relationship between labor productivity and real wages, but that unemployment was apparently unconnected to the system. The results suggested that labor productivity is positively related to real wage in the long run. However, the increase in real wage exceeds the increase in labor productivity causing an increase in unit labor cost. In addition, the study found a positive causal flow from productivity to wages in the short-run supporting the marginal productivity theory.
|Item Type:||MPRA Paper|
|Original Title:||Is Productivity Linked To Wages? An Empirical Investigation in Malaysia|
|English Title:||Is Productivity Linked To Wages? An Empirical Investigation in Malaysia|
|Keywords:||real wages, productivity, Malaysia|
|Subjects:||J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J30 - General|
|Depositing User:||soo khoon goh|
|Date Deposited:||28. Oct 2009 16:57|
|Last Modified:||12. Feb 2013 05:53|
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