Is Productivity Linked To Wages? An Empirical Investigation in Malaysia
Soo Khoon Goh
MPRA Paper from University Library of Munich, Germany
Abstract:
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.
Keywords: real wages; productivity; Malaysia (search for similar items in EconPapers)
JEL-codes: J30 (search for similar items in EconPapers)
Date: 2009-08
New Economics Papers: this item is included in nep-dev, nep-eff, nep-lab and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:18095
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