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The impact of labor productivity on wages in the EU

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  • Lyuboslav Kostov

Abstract

The relationship between labor productivity and wages in the EU as a whole, as well as in comparative terms between old and new Member States is analyzed. Although the theoretical basis for such a study well known, some recent empirical studies put forth the need to rethink this relationship in the period after the crisis. In this regard, a result that is new to the Bulgarian literature has been drawn up with the help of modern panel econometric methods, which shows that there is an asymmetry in the relationship between labor productivity and wages before and after the global financial and economic crisis of 2007-2009. In addition, a further explanation of the asymmetry between labor productivity and wages, as found in the literature, is provided.

Suggested Citation

  • Lyuboslav Kostov, 2020. "The impact of labor productivity on wages in the EU," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 146-158.
    • Handle: RePEc:bas:econth:y:2020:i:3:p:146-158
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    References listed on IDEAS

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    8. Lawrence F. Katz & Olivier Blanchard, 1999. "Wage Dynamics: Reconciling Theory and Evidence," American Economic Review, American Economic Association, vol. 89(2), pages 69-74, May.
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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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