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- W3122344596 abstract "This paper uses panel cointegration and error correction models to unveil the direction of long-run causality between the real product wage and labor productivity at the industry level. I use two datasets of manufacturing industries: the EU-Klems dataset covering 11 industries in 19 developed economies, and the Unido Industrial Statistics Database covering 22 industries in 30 developed and developing economies. In both datasets, I find evidence of cointegration between the two variables, as well as evidence of two-way, long-run Granger causality. These findings are consistent with theories of directed technical change, which claim that a rise in labor costs sparks the adoption of labor-saving innovations. They are also consistent with distributive theories whereby real wages keep apace of labor productivity growth, giving rise to long-run stability in functional distribution." @default.
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- W3122344596 date "2014-01-01" @default.
- W3122344596 modified "2023-09-27" @default.
- W3122344596 title "Real wages and labor-saving technical change: evidence from a panel of manufacturing industries in mature and labor-surplus economies" @default.
- W3122344596 hasPublicationYear "2014" @default.
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