Labor Productivity and Real Unit Wage Index in Turkiye

Abstract

We provide the causality between real wage and productivity in the Turkish economy. The results are also provided at the sectoral levels. We employ a Granger causality analysis to observe the flow of causation. We find that labor productivity statistically causes real wage movements. This estimation is also valid for the manufacturing sector and the electricity, gas, steam, and air conditioning supply sectors. Besides, there exists a bi-directional relationship in the mining and quarrying sector.

Keywords

• Labor productivity
• real unit wage index
• Granger causality
• stationary

References

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