Wage share and economic growth: evidence from Eastern Europe

Dan Lupu (), Dumitru-Nicușor Cărăusu and Mihaela Ifrim

Applied Economics Letters, 2023, vol. 30, issue 6, 772-779

Abstract: In this article, we explore the causal relationship between wage share and economic growth for 11 Eastern European countries. The methodology used was wavelet coherency for the period between 1995Q1 and 2020Q4. Our results reveal that economic growth acts as the leading role for wage share increase for most Eastern European countries, and only for certain periods, wages can determine economic growth. Furthermore, we find that GDP increases cause wages to increase at different frequencies; there is a positive correlation between GDP growth and wage growth; the effects of wage-led growth policies were weak and only on short periods. Our estimations cast a high degree of uncertainty on the effectiveness of wage increase policies promoted by some national authorities to achieve economic growth.

Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2021.2018398 (text/html)
Access to full text is restricted to subscribers.

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:taf:apeclt:v:30:y:2023:i:6:p:772-779

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2021.2018398

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().