نوع مقاله : مقاله پژوهشی
نویسندگان
1 دانشجوی دکتری، گروه اقتصاد، واحد میانه، دانشگاه آزاد اسلامی، میانه، ایران
2 استادیار، گروه اقتصاد، دانشگاه پیام نور، تهران، ایران
3 استادیار، گروه اقتصاد، واحد میانه، دانشگاه آزاد اسلامی، میانه، ایران
چکیده
هدف پژوهش حاضر، تعیین تأثیر دستمزد و تورم بر بهرهوری نیروی کار با استفاده از تکنیک اقتصادسنجی مارکوف سوئیچینگ در 15 کشور منتخب درحال‌توسعه طی بازه زمانی 2006 الی 2017 است. در این مقاله شاخص‌های سرمایهگذاری مستقیم خارجی، سرمایه انسانی، فضای کسب‌وکار، کنترل فساد و آزادسازی تجاری به‌عنوان متغیرهای کنترل در مدل لحاظ شدند. نتایج برآوردها حاکی از تأثیر منفی تورم و تأثیر مثبت دستمزد بر بهرهوری نیروی کار در هر دو رژیم (رونق و رکود) است. در ارتباط با متغیرهای کنترل نیز، متغیرهای سرمایه انسانی، آزادسازی تجاری و فضای کسب‌وکار در هر دو رژیم (رونق و رکود) دارای تأثیر مثبتی بر بهرهوری نیروی کار هستند. ولی در مورد سرمایهگذاری مستقیم خارجی و کنترل فساد، در رژیم اول (رونق) شاهد رابطه مثبت و در رژیم دوم (رکود) شاهد رابطه منفی هستیم. همچنین جهت مطالعه دقیق‌تر، به بررسی رابطه علی تورم و دستمزد با بهرهوری نیروی کار با روش گرنجر پرداخته شد که نتایج مبین رابطه علیت دوسویه بین متغیرهای موردبررسی است.
کلیدواژه‌ها
موضوعات
عنوان مقاله [English]
The Effect of Wages and Inflation on the Labor Productivity in Selected Developing Countries
نویسندگان [English]
- akram hasannejsad 1
- mahdi moradi 2
- Sima eskandari 3
1 Ph.D. Candidate, Department of Economics, Miyaneh Branch, Islamic Azad University, Miyaneh, Iran
2 Assistant Professor, Department of Economics, Payame Noor University, Po Box 19395-3697, Tehran, Iran
3 Assistant Professor, Department of Economics, Miyaneh Branch, Islamic Azad University, Miyaneh, Iran
چکیده [English]
1- INTRODUCTION
In today's competitive world, productivity as a philosophy and a vision based on the strategy of improving operations is the most important goal of leading organizations and is a necessity for economic growth and improving the living and welfare of a country. The amount and rate of productivity growth in each country has a significant impact on the trend of macroeconomic variables at the global level. Many factors affect productivity, among which, the role of wages and inflation can be very important.
2- THEORETICAL FRAMEWORK
In the inflationary state, a misunderstanding is created in relation to the levels of relative prices in societies; therefore, in such a situation, an atmosphere of uncertainty dominates the economy of countries and production costs increase due to inflation, and this can affect the wages paid by the employer to the workforce. As a result of the increase in prices and the disproportion of salary increase with inflation, the real income of the labor force decreases and the labor force cannot cover all its expenses. Therefore, in an inflationary state, we will witness things such as a decrease in the health of the workforce, a decrease in the level of education of the workforce, a decrease in the motivation of the workforce, and the creation of a class gap; therefore, labor productivity can gradually decrease.
3- METHODOLOGY
The aim of this study is to determine the effect of wages and inflation on labor productivity by using Markov switching econometric technique in 15 selected developing countries (Iran, Brazil, Egypt, Indonesia, Jordan, Mauritius, Mongolia, Philippines, Thailand, Colombia, India, Kazakhstan, Mexico, Peru and South Africa) during the period 2006 to 2017. In this paper, the indicators of foreign direct investment, human capital, business environment, corruption control, and trade liberalization were considered as control variables in the model.
Markov switching econometric technique was used to estimate the effects of variables. Also, for more detailed investigations, the causal relationship between inflation and wages and labor productivity was investigated by using the Granger method.
4- RESULTS & DISCUSSION
The results of the estimations indicated the negative effect of inflation on labor productivity in both regimes (boom and recession). This result was consistent with the results of most domestic and foreign studies, but it is somewhat contradictory to Aiheanacho's (2017) study. The impact of wages on labor productivity was positive in both regimes (boom and recession), which indicates the confirmation of efficiency wage theories. In connection with control variables, human capital variables, trade liberalization and business climate had a positive effect on labor productivity in both the first and second regimes. In confirming the positive relationship of the business environment on productivity, it can be acknowledged that the business environment is a political, institutional and behavioral environment that affects the efficiency and risks associated with economic activities and investment. It provides the basis for more production, so production per worker also increases, which means increased labor productivity.
5- CONCLUSIONS & SUGGESTIONS
The results show that there is a negative and significant relationship between inflation and labor productivity in the studied countries. Therefore, governments should through reducing interference in the economy and compliance with the monetary rule and management of liquidity growth rate and creating grounds for economic stability, deal with the risk and uncertainty resulting from inflation.
Also, according to the results, there is a positive and significant relationship in both the first and second regimes, between labor wages and labor productivity, so it is necessary to adjust the wage laws based on the real value of labor (productivity) to strengthen the merit system and improve productivity. It is also necessary to adopt policies according to the theory of the value of the final product. So that the increase in wages without the destructive effects of inflation caused by cost pressure, leads to an increase in productivity. For this purpose, the labor law and wage payment mechanism should be amended. The findings of the research show that there is a positive and significant relationship between the business environment and the productivity of the labor force in both boom and recession regimes, so it is suggested that sustainable and coherent planning in order to improve and expansion of the infrastructure of the business space in the investigated communities. Therefore, it seems necessary for governments to think of measures that lead to productive investments in the business space.
The results show that the effect of wages on labor productivity is positive in both regimes (boom and recession). In relation to the control variables, the variables of human capital, trade liberalization and business climate have a positive effect on labor productivity in both regimes (boom and recession). But regarding the variables of foreign direct investment and corruption control, we observe a positive relationship in the first regime (prosperity) and a negative relationship in the second regime (recession). Also, for more detailed studies, the causal relationship between inflation and wages with labor productivity has been investigated by using the Granger method, which indicates a two-way causal relationship between the investigated variables.
کلیدواژه‌ها [English]
- Wages
- Inflation
- Labor Productivity
- Markov-switching
References
Abrishami, H.; Mehrara, M.; Ahrari, M., & Nouri, M. (2010). An investigation of nonlinear GMDH causality between inflation and productivity growth in Iran. Journal of Economics and Modeling, 1(2), 131-160. (in Persian)
Afrooznia, A., & Tavakkoli, A. (2017). A comparative study of workforce productivity in Iran. Journal of Research in Human Resources Management, 8(4), 105-126. (in Persian)
Aleemran, R., & Aleemran, S. A. (2015). Impressibility of wages from labor force productivity in Iran (application of johansen-juselius method). The Journal of Productivity Management, 9(4(35)), 65-82. (in persian)
Amini, A., & Lotfipour, M. (2014). The effect of liberalization of financial services trade on the productivity of total production factors. Economic Science Quarterly, 19(75), 113-89. (in Persian)
Amini, A., & Hejazi Azad, Z. (2007). An analysis and assessment of health contribution to increasing labor productivity: A case study of Iran. Iranian Journal of Economic Research, 9(30), 137-163. (in persian)
Aparicio, S. (2016). Institutional factors, opportunity entrepreneurship and economic growth: panel data evidence. Technological Forcasting& Social Change, 102, 45-61
Azizi, A.; Zare, H.; Aminifard, A., & Khodaparast Shirazi, J. (2022). Optimal inflation rate measurement for minimizing economic inequality: The dynamic stochastic general equilibrium approach. Financial Economics, 16(60), 355-380.
doi: 10.30495/fed.2022.697619
Bans-Akutey, M.; Yaw Deh, I., & Faisal, M. (2016). What is the effect of Inflation on Manufacturing Sector Productivity in Ghana: MPRA Paper, 75145, 1- 9.
Cheraghi, D. (2015). Survey of the effect of macroeconomics variables fluctuation on productivity growth of Iran agriculture sector. Agricultural Economics and Development, 23(1), 203-221. (in persian)
doi: 10.30490/aead.2015.58959
Cruz, D. (2023). Labor productivity, real wages, and employment in OECD economies, structural change and Economic Dynamics, 367-382.
https://doi.org/10.1016/j.strueco.2023.05.007
- Wu, P.; Louie, A.; Bierman, S., & Schieman (2023). Assessment of sociodemographics and inflation-related stress in the USJAMA Network Open, 6 (5), Article 231343, 10.1001/ jamanetworkopen.2023.13431
Davis, E. P., & Madsen, J. B. (2008). Productivity and equity market fundamentals: 80 years of evidence for eleven OECD countries. Journal of International Money and Finance, 27, 1261-1283.
Deschamps, Ph. J. (2008). Comparing smooth transition and markov switching autoregressive models of Us Unemployment. Journal of Applied Econometrics, (4), 435-462.
Dossche, M., & Lewis, V. (2023). Labor adjustment and productivity in the OECD, Review of Economic Dynamics, 47.
Dritsaki, Ch. (2016). Real wages, inflation, and labor productivity: Evidences from Bulgaria and Romania. Journal of Economic & Financial Studies, 5, 24-36.
Eryılmaz, F., & Bakır, H. (2018). Real wages, inflation and labor productivity: an evaluation within Turkish context, Hitit University Journal of Social Sciences Institute, 11(3).
https://doi.org/10.5709/ce.1897-9254.261
Fatula, Dariusz. (2018): Selected micro- and macroeconomic conditions of wages, income and labor productivity in Poland and other European Union countries, Contemporary Economics, ISSN 2300-8814, University of Finance and Management in Warsaw, Faculty of Management and Finance, Warsaw, Vol. 12, Iss. 1, pp. 17-32.
Feizpour, M. A., & Shams Esfandabadi, A. (2019). Wages and Productivity in Iran’s Manufacturing Industries with a Production Boom Strategy. Quarterly Journal of the Macro and Strategic Policies, 7(27), 326-345. (in Persian)
https://doi: 10.32598/JMSP.7.3.1
Herman, E. (2020). Labour productivity and wages in the Romanian manufacturing sector, Procedia Manufacturing, 46(20), 313-21.
https://doi.org/10.1016/j.promfg.2020.03.046
Hoolda, K., & Bun Song, L. (2023). Aging workforce, wages, and productivity: Do older workers drag productivity down in Korea? The Journal of the Economics of Ageing, Volume 24, February 2023.
Iheanacho, D. (2017). Empirical review on the relationship between Real Wages, Inflation and labor productivity in Nigeria: ARDL bounds testing approach. International Economics and Business, 1, 9-29.
Karimu, S. (2019). Structural transformation, openness, and productivity growth in Sub-Saharan Africa, WIDER Working Paper, 1(109), pp. 1-8
Kim, S., & Bhattacharya, R. (2009). Regional Housing Prices in the USA: An Empirical Investigation of Nonlinearity. Journal of Real Estate Finance and Economics, 4, 443-460.
Ku, Hyejin. (2022). Does minimum wage increase labor productivity? Evidence from Piece Rate Workers, Journal of Labor Economics, 40(2).
https://doi.org/10.1086/716347.
Lasagni, A.; Nifo, A., & Gaetano, V. (2015). Firm productivity and institutional quality: Evidence from Italian Industry. Journal of Regional Science, Vol. 55, Issue 5,774-800.
Mirshafiee, A.; Shahrestani, H.; Memarnezhad, A., & ghaffari, F. (2022) Inflation Uncertainty and Health. Payesh; 21(3):273-285
URL: http://payeshjournal.ir/article-1-1790-fa.html
Mobini Dehkordi, M., & Rajabi, F. (2013). Investigating the relationship between productivity, inflation and inflation: a case study of Iran's agricultural sector, international and online conference on green economy. (in Persian)
Motamedi, S. (2014). Degree of Financial Openness, Capital Formation, Productivity and Economic Growth in Developing Countries, master's thesis, Tehran: University of Tehran. (in Persian)
Mehr Ara, M., & Noori, M. (2017). Investigating the relationship between inflation and productivity: a theoretical approach, Yas Strategy, 25: 74-70.
Mowlaei, M., & Shahab, A. (2017). Comparing the effective Factors on labor Force productivity in small and large industry in Iran: 1994- 2013. The Journal of Productivity Management, 11(2), 115-144.
Najafi, Z., & Azarbaiejani, K., (2017). Investigating the effective Factors on Labor Force Productivity in Production Function Frame Work (With an emphasis on entrepreneurship. The Journal of Productivity Management, 11(3(42), 7-35. (in persian)
Nowrozi, F.; Nunjad, M.; Ebrahimi, M. & God Worshiper, C. (2021). Comprehensive study on labor productivity growth in Iran, using meta-heuristic methods. Financial Economics, 15(54), 181-208.
Oluwanisola, A. (2017). Modeling the effect of healthcare expenditure and education expenditure on labour productivity: a study on OIC countries. Journal of Business and Economics Review, 2(2), 31-37
Patricia Louie, Cary Wu.; Faraz, V., & Shahidi, Arjumand Siddiq. (2023). Inflation hardship, gender, and mental health, SSM - Population Health, Volume 23, 101-452
Rohini Dunuwita, L. (2021). Impact of inflation on labour productivity in Sri Lanka. International Journal of Economic Behavior and Organization. 9(3), 2021, pp. 57-70.
https://doi: 10.11648/j.ijebo.20210903.13
Saten K.; Don J., & Webber, G. (2012). Real wages, inflation and labour productivity in Australia, Applied Economics, 44, 2012 - Issue 23.
Shahabadi, A. (2013). The evaluation of impacts of knowledge-based economy factors on total factor productivity selected countries. Journal of Economics and Regional Development, 20(5) (in persian)
https://doi: 10.22067/erd.v1392i5.30534
Shahinpour, A., & Karabulut, K. (2022). Presenting a model of the Impact of Economic Variables on the Total Productivity Index in Iran. The Journal of Productivity Management, 16(1(60), 279-301. (in Persian)
https://doi: 10.30495/qjopm.2021.1864110.2393
Serfraz, A. (2018). Foreign direct investment inflows and labor productivity in pakistan: A Sector-Wise panel cointegration analysis. Asian Journal of Economics and Empirical Research, 5(1), 1-18.
Stundziene, A., & Baliute, A. (2022). Personnel Costs and Labour Productivity: The Case of European Manufacturing Industry, Economies 2022, 10(2), 31.
Sniukine, A., & Matuzeviciute, K. (2018). Impact of human capital development on productivity growth in EU member states, Business, Management and Education, 16(1), 1-12.
Tabaghchi Akbari, L.; Babazadeh, M.; Sameei, G.; Akhundzadeh, t., & Yousefi, T. (2022). Nonlinear effects of financial integration and inflation on labor productivity in selected developing countries: The Markov Switching Approach. Financial Economics, 16(60), 249-280. (in Persian)
https://doi: 10.30495/fed.2022.697614
Tafazoli, F. (1997). Macroeconomics, theories and economic policies. Tehran: No publication. (in persian)
Yildirim, Z. (2015). Relationships among Labor Productivity, Real Wages and Inflation in Turkey: Economic Research-Ekonomska Istraživanja, 1, 85-103.
Yingfu, X., & Jun, Y. (2007). A. General Autoregressive model with markov switching: Estimation and Consistency Research Report. Centre of Bio stochastics, 6, 1-21.
)
ارسال نظر در مورد این مقاله