مدیریت بهره وری (Dec 2015)
Impressibility of Wages from Labor Force Productivity in Iran (Application of Johansen-Juselius Method)
Abstract
Wage and labor productivity are two key variables of labor market and are of interest to the economics connoisseurs on two levels – micro and macro – from the viewpoint of economic logic and policy-making. These two variables are related, on the one hand, to the efficacy of the economic secrots’ decisions and on the other, to the economic growth, development, and welfare. The purpose of the present research is to investigate the impressibility of wages from the labor productivity in Iran during the period from 1978 to 2012. For the theoretical analysis of the subject, Johansen - Juselius method has been used. The results obtained from the research indicate that the impact of the variable coefficients accorded with the theoretical foundations and were statistically significant. The results show that the increase in each variable – average productivity of labor, minimum wage, educational level of the labor force, and the rate of labor force employment – causes the increase in average wage. Also, the results of vector error correction model indicate that in each period, 0.79 of short run imbalances are adjusted to achieve long run balance.
