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Coefficient of Structural Concordance and an Example of its Application: Labour Productivity and Wages in Slovenia

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  • Miroslav Verbič

    ()
    (Faculty of Economics, University of Ljubljana, Slovenia & Institute for Economic Research, Ljubljana)

  • Franc Kuzmin

    (Faculty of Economics, University of Ljubljana, Slovenia & Institute for Economic Research, Ljubljana)

Abstract

The article presents the underlying principles, derivation and properties of a simple descriptive measure of concordance between two analogous rank structures that we call the coefficient of structural concordance. It is based upon the idea of Kendalls coefficient of concordance, which we extend to two rank structures. As the coefficient of structural concordance is a pure intergroup measure of concordance, it is designed to complement the Kendalls intragroup coefficient of concordance. We apply this descriptive measure by exploring the relationship between wages and labour productivity in Slovenia for the period 19982007. We are able to confirm the hypothesis of high concordance between wages and labour productivity, which indicates a stimulative role of wages in production of market traded goods and services.

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Bibliographic Info

Article provided by Savez ekonomista Vojvodine, Novi Sad, Serbia in its journal Panoeconomicus.

Volume (Year): 56 (2009)
Issue (Month): 2 (June)
Pages: 227-240

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Handle: RePEc:voj:journl:v:56:y:2009:i:2:p:227-240

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Web page: http://www.panoeconomicus.rs/

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Keywords: Coefficient of structural concordance; Kendalls coefficient of concordance; Labour productivity; Slovenia; Value added per employee; Wages.;

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  1. Grzegorzewski, Przemyslaw, 2006. "The coefficient of concordance for vague data," Computational Statistics & Data Analysis, Elsevier, vol. 51(1), pages 314-322, November.
  2. W. Schucany & W. Frawley, 1973. "A rank test for two group concordance," Psychometrika, Springer, vol. 38(2), pages 249-258, June.
  3. Lawrence Hubert, 1979. "Generalized concordance," Psychometrika, Springer, vol. 44(2), pages 135-142, June.
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