The Relationship Between Wages and Productivity: TAR Unit Root and TAR Cointegration Approach

Melike Bildirici and Elçin Aykaç Alp

International Journal of Applied Econometrics and Quantitative Studies, 2008, vol. 5, issue 1, 93-110

Abstract: We analyzed the relationship between wages and productivity in 1990 - 2007 period in Turkey. At the first stage we followed the traditional unit root tests and apply the analysis followed by unit root test procedure proposed by Caner and Hansen (2001). Then we discussed the long run nonlinear relationship between wages and productivity by employing the TAR cointegration analysis developed by Hansen and Seo (2002).

Keywords: wage; productivity; non linear; TAR unit root; TAR cointegration (search for similar items in EconPapers)
JEL-codes: C32 J31 (search for similar items in EconPapers)
Date: 2008
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