Relationship between Inflation Rate, Unemployment Rate and Wage Level in China Based on Multiple Linear Regression Model

Yingwen Qin ()
Additional contact information
Yingwen Qin: Central University of Finance and Economics

A chapter in Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024), 2025, pp 221-231 from Springer

Abstract: Abstract Inflation and unemployment rate are both important indicators related to a country’s macroeconomic development. Wage level is an essential factor reflecting the livelihood of a nation’s citizens. This paper adopts the method of multiple linear regression, building an econometric model to investigate the impact of inflation and unemployment rates individually and together on wage levels in China in recent 20 years. The empirical results show that there is a significant positive correlation between the unemployment rate and the average wage. One percent increase in the unemployment rate would double the average wage. There is a slight significant negative correlation between the inflation rate and wage level. It may be due to the fact that the relationship between them is non-linear. Besides, they may be influenced by other economic factors such as the social environment and market competition.

Keywords: Wage Level; Inflation; Unemployment; Multiple Linear Regression (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:advbcp:978-94-6463-652-9_23

Ordering information: This item can be ordered from
http://www.springer.com/9789464636529

DOI: 10.2991/978-94-6463-652-9_23

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().