Papavangjeli, Meri (2018): Assessing real wage flexibility in Albania. Published in: Bank of Albania Economic Review 2018H1 (30 July 2018): pp. 1-11.
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Abstract
Based on aggregate level data for the period 2000Q1-2017Q2, this article aims at assessing the degree of real wage flexibility in Albania within a vector error-correction model, where real wage flexibility is conceptualized using two indicators: the responsiveness of real wages to unemployment rate and their responsiveness to changes in productivity. In the very short run (2-3 quarters), most of the variation in real wages forecast errors is explained by their past values (more than 70%) rather than by labor productivity or unemployment rate. The analysis confirms the fact that real wages are slightly flexible towards these two variables. However, these conclusions are based on a particular statistical methodology and may be affected by certain statistical problems due to the quality of the underlying data series.
Item Type: | MPRA Paper |
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Original Title: | Assessing real wage flexibility in Albania |
English Title: | Assessing real wage flexibility in Albania |
Language: | English |
Keywords: | real wage, flexibility, productivity, unemployment |
Subjects: | C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J30 - General |
Item ID: | 116861 |
Depositing User: | Meri Papavangjeli |
Date Deposited: | 31 Mar 2023 12:16 |
Last Modified: | 31 Mar 2023 12:16 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/116861 |