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The Impact of Compensation Growth on Inflation Rate and Unemployment

Bianca Costache ()
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Bianca Costache: The Bucharest University of Economics Studies

Hyperion Economic Journal, 2018, vol. 6, issue 1, 27-32

Abstract: The study analyzes the manner in which the growth rate of employees’ compensation impacts both inflation rate and unemployment rate. The objective of the study is to identify, analyze and evaluate the effects of the compensation’s growth on inflation and unemployment for five countries: Bulgaria, Czech Republic, Hungary, Poland and Romania with quarterly data collected for the period between 2000 - 2018. The results of the study proved to be important as it indicates the variation in the effects of compensation of employees on each indicator due to the pecularity of each country, as well as the manner in which every economy responds to a positive impact given by the growth of the general wage level.

Keywords: compensation; inflation; unemployment; cointegration; causality (search for similar items in EconPapers)
JEL-codes: E24 E31 M52 (search for similar items in EconPapers)
Date: 2018
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Handle: RePEc:hyp:journl:v:6:y:2018:i:1:p:27-32