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The Level of Wage and Labor Productivity in Hotel Industry: An Analysis

Author

Listed:
  • Inanda Karina Astari Fatma

    (Universitas Sriwijaya, Indonesia)

  • Syamsurijal Abdul Kadir

    (Universitas Sriwijaya, Indonesia)

  • Tatang Sariman

    (Universitas Sriwijaya, Indonesia)

  • Saadah Yuliana

    (Universitas Sriwijaya, Indonesia)

Abstract

Wage is a phenomenon that happen today is high wage and high competitiveness. Wage theory that was developed by Rees (1973) and Katz (1980) explain that wage cannot only be seen only as a production cost but also as a part of an effort to increase the labor prosperity and motivation. This theory is a wage efficiency theory, which stated that company’s revenue can increase despite paying wage above the market wage equilibrium. Even though here the two experts had calculated the problem of labor’s quality but they have not reach empirical testing by developing certain model. Therefore, the researchers saw this gap as an opportunity to unravel the phenomena happening to labor and make an effort to develop an empirical model to see the influence of wage to productivity and variable that can measure the quality of labor and other variables that affect wage and productivity simultaneously. The factors used are the difference in individual characteristic, human capital, and quality of work life. The approach of this research is constructivism approach through quantitative analysis technique with simultaneous equation system. Analysis unit in this research is labor in hospitality industry. Estimation results of research shows that education, training, experience, work hour and productivity have significant positive influence to wage, while age and work status is not significant. Quality of work life, and wage have significant positive influence to productivity, while education, experience, age and work status have no significant influence. Important finding from research that training has significant influence to productivity but negatively. Overall, findings of this research show that positive effect of training to productivity will be bigger in organization that willing to invest in work environment that support the labor. Keywords: Human Capital, Hotel Industry, Labor Productivity, Quality of Work Life, Wage

Suggested Citation

  • Inanda Karina Astari Fatma & Syamsurijal Abdul Kadir & Tatang Sariman & Saadah Yuliana, 2017. "The Level of Wage and Labor Productivity in Hotel Industry: An Analysis," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 5(2), pages 36-50.
    • Handle: RePEc:ejn:ejefjr:v:5:y:2017:i:2:p:36-50
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    References listed on IDEAS

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