A cross-sectoral analysis of the relation between labor productivity and labor compensation in the European Union

Q3 Economics, Econometrics and Finance

Applied Econometrics Pub Date : 2021-01-01 DOI:10.22394/1993-7601-2021-62-54-65

A. D. Fofack, S. D. Temkeng

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Abstract

The aim of this paper is to assess and compare the link between labor productivity and compensation in four industries — air transport, electronics, finance, and telecommunications — of twenty‐five member states of the European Union (EU) from 2000 to 2014. The long‐run and short‐run dynamics of productivity and compensation are analyzed using the pooled mean group (PMG), the mean group (MG) and the dynamic fixed effects (DFE) estimators. The results confirm the existence of a gap between productivity and compensation in each of those industries as mentioned in previous studies. However, the results show that despite that gap, the link between the two variables is not broken. That is, productivity and compensation are not only linked in the long run, but they also return to their long‐run equilibrium after every short‐run disturbance. The econometric analysis also reveals that the relation between productivity and compensation does not follow a significantly different pattern from one industry to the other. These findings robust to alternative models, estimation techniques and across industries, suggest that there are some other cross‐sectoral factors preventing productivity gains to be fully reflected on paychecks.

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欧盟劳动生产率与劳动报酬关系的跨部门分析

本文的目的是评估和比较欧盟(EU) 25个成员国从2000年到2014年四个行业(航空运输、电子、金融和电信)的劳动生产率与薪酬之间的联系。使用混合平均组(PMG)、平均组(MG)和动态固定效应(DFE)估计器分析了生产率和薪酬的长期和短期动态。研究结果证实了在以前的研究中提到的每个行业的生产率和薪酬之间存在差距。然而，结果表明，尽管存在差距，但这两个变量之间的联系并没有中断。也就是说，生产率和薪酬不仅在长期内是联系在一起的，而且在每一次短期干扰之后，它们也会回到长期平衡状态。计量经济学分析还表明，生产率与薪酬之间的关系并不遵循一个显著不同的模式，从一个行业到另一个行业。这些发现对替代模型、估计技术和跨行业都很有效，表明还有其他一些跨部门因素阻碍了生产率的提高，使其无法充分反映在工资上。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Applied Econometrics Economics, Econometrics and Finance-Economics, Econometrics and Finance (miscellaneous)

CiteScore

0.70

自引率

0.00%

发文量

期刊介绍： The Journal of Applied Econometrics is an international journal published bi-monthly, plus 1 additional issue (total 7 issues). It aims to publish articles of high quality dealing with the application of existing as well as new econometric techniques to a wide variety of problems in economics and related subjects, covering topics in measurement, estimation, testing, forecasting, and policy analysis. The emphasis is on the careful and rigorous application of econometric techniques and the appropriate interpretation of the results. The economic content of the articles is stressed. A special feature of the Journal is its emphasis on the replicability of results by other researchers. To achieve this aim, authors are expected to make available a complete set of the data used as well as any specialised computer programs employed through a readily accessible medium, preferably in a machine-readable form. The use of microcomputers in applied research and transferability of data is emphasised. The Journal also features occasional sections of short papers re-evaluating previously published papers. The intention of the Journal of Applied Econometrics is to provide an outlet for innovative, quantitative research in economics which cuts across areas of specialisation, involves transferable techniques, and is easily replicable by other researchers. Contributions that introduce statistical methods that are applicable to a variety of economic problems are actively encouraged. The Journal also aims to publish review and survey articles that make recent developments in the field of theoretical and applied econometrics more readily accessible to applied economists in general.