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An Econometric Analysis Of Relationship Between Real Wages And Employment

  • Erkan Ozata
  • Ethem Esen

    ()

    (Anadolu University
    Anadolu University)

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    The relationship between real wages and employment has long been the controversial issue in economic theory. In this respect this study investigates the existence and the direction of a long-run relationship between real wages and employment level. For this purpose, cointegration and causality tests are applied to quarterly data from 1988:1 to 2008:4 of Turkish private manufacturing industry. The results indicate the existence of a long-run relationship between real wages and employment level. When the direction of this relationship is analyzed, obtained results support the view of Neo-classical economists. According to this, a reduction in real wages will increase the employment level.

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    File URL: http://www.anadolu.edu.tr/arastirma/hakemli_dergiler/sosyal_bilimler/pdf/2010-2/2010_02_05.pdf
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    Article provided by Anadolu University in its journal Anadolu University Journal of Social Sciences.

    Volume (Year): 10 (2010)
    Issue (Month): 2 (May)
    Pages: 55-70

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    Handle: RePEc:and:journl:v:10:y:2010:i:2:p:55-70
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