Estimation Of The Great Decoupling On The Example Of Croatia, As Compared With Germany And Poland

Jurica Bosna

Poslovna izvrsnost/Business Excellence, 2018, vol. 12, issue 1, 33-52

Abstract: There are many papers in the economic literature that examine the link between real wages and labor productivity while each of them have different approaches and aspects of research. It is widely believed that in many countries wage growth has fallen massively behind productivity growth and has caused a productivity-wage gap popularly called “the great decoupling”. The paper deals with this important issue at the level of Croatia, Germany and Poland by analyzing trajectories and causality between compensations of employees and productivity per person employed. It is important and unique because it presents a new empirical approach that observes the productivity-wage gap between these countries on the individual state level. The research reveals interesting results about how the great decoupling in the observed countries is a myth according to the rate trends. However, there is causality between labor productivity and compensation of employees (and vice-versa) for Germany and Poland, but not for Croatia.

Keywords: the great decoupling; inverse decoupling; productivity-wage gap; Granger causality (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://hrcak.srce.hr/file/301749 (application/pdf)
None

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zag:busexc:v:12:y:2018:i:1:p:33-52

Access Statistics for this article

Poslovna izvrsnost/Business Excellence is currently edited by Tonći Lazibat

More articles in Poslovna izvrsnost/Business Excellence from Faculty of Economics and Business, University of Zagreb Contact information at EDIRC.
Bibliographic data for series maintained by Dario Dunković ( this e-mail address is bad, please contact ).