Subject: Western versus Eastern Europe
Subject: Great Decoupling
Subject: productivity
Subject: compensation
Subject: bootstrap panel approach
Year: 2023
Type: Article
Title: Do Wages Reflect Growth Productivity – Comparing the European East and West?
Author: Trenovski, Borce
Author: Gligorić, Dragan
Author: Kozeski, Kristijan
Author: Merdzan, Gunter
Abstract: The research determines the gap (Great Decoupling) between labour productivity and workers’ compensation in the two blocks of EU countries (Western versus Eastern). The division of countries into two groups provides a basis further to determine whether the previous socio-economic and political evolutionary development of these countries blocks still has a significant impact on the functional distribution of national income, on the extent to which labour productivity growth is transmitted to workers. The results are heterogeneous. In the sample of highly developed Western EU countries where higher levels of labour productivity, as well as high levels of technological development, lead to an increase in labour productivity to be followed by a lower increase in workers’ compensation. On the sample of Eastern EU countries, results indicate different relationships and the strength of causality between productivity and labour compensation. Central-East EU countries had a more positive relationship between real workers’ compensation and labour productivity, compared to the Southeast Europe (Balkan) countries where an increase in workers’ compensation causes a reduction in labour productivity. The results also offer a solid basis for understanding wage/income/productivity relationships d for creating policies for a more efficient distribution of national income.
Publisher: Taylor & Francis Online
Relation: Journal of Balkan and Near Eastern Studies
Identifier: oai:repository.ukim.mk:20.500.12188/25743
Identifier: Borce Trenovski, Dragan Gligorić, Kristijan Kozheski & Gunter Merdzan (2023) Do Wages Reflect Growth Productivity – Comparing the European East and West?, Journal of Balkan and Near Eastern Studies, DOI: 10.1080/19448953.2023.2167167
Identifier: http://hdl.handle.net/20.500.12188/25743Identifier: 10.1080/19448953.2023.2167167
