A mathematical contribution to the economic growth theory. Evidence on the relationship between wages and output from the Italian regions

Rosa Ferrentino () and Luca Vota ()
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Rosa Ferrentino: University of Salerno
Luca Vota: University of Salerno

INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, 2023, issue 57, 111-133

Abstract: In this manuscript, the authors empirically assess the impact of an increase in the wage per worker on the GDP per capita of the Italian regions. To achieve this research aim, the authors carry out a panel data regression analysis, relying on an identification strategy based on the standard Neoclassical model of economic growth. The authors’ results suggest that, on average, the output effect of an increase in the wage per worker is positive, with a substantial difference between the Northern and Center-Southern regions. The authors’ policy implication is that wage moderation does not represent a remedy to the economic stagnation that the Italian regions have been experiencing since the second half of the 1990s.

Keywords: Wage-led economic growth; wage per worker; regional development; Neo-Kaleckian economics; Neoclassical economics (search for similar items in EconPapers)
JEL-codes: C02 C23 O47 P16 R11 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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