Do wages reflect labor productivity? The case of Belgian regions
We simultaneously estimate a wage and a labor productivity equation where we include regional dummies as explanatory variables. We find that the wage-productivity gap reached 11% for Brussels and 4.2% for Wallonia in the years 2005 - 2012. This was driven by the negative performance in labor product...
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| Veröffentlicht in: | IZA Journal of European Labor Studies 2014-12, Vol.3 (11), p.1-21, Article 11 |
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| container_title | IZA Journal of European Labor Studies |
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| creator | Konings, Jozef Marcolin, Luca |
| description | We simultaneously estimate a wage and a labor productivity equation where we include regional dummies as explanatory variables. We find that the wage-productivity gap reached 11% for Brussels and 4.2% for Wallonia in the years 2005 - 2012. This was driven by the negative performance in labor productivity of firms in these regions relative to Flanders, which more than compensated for the advantage in average salary cost they enjoyed. These results are coherent with the existence at the regional level of institutional barriers to the firm-level adjustment of wages to labor productivity. |
| doi_str_mv | 10.1186/2193-9012-3-11 |
| format | Article |
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| source | Elektronische Zeitschriftenbibliothek - Frei zugängliche E-Journals; Springer Nature OA Free Journals |
| subjects | Agglomeration Agreements Collective bargaining Committees Economic conditions Economic models Economic statistics Economic theory Economics Economics and Finance Employment European Integration Labor costs Labor Economics Labor market Labor productivity Labor supply Literature reviews Novellas Original Article Population Economics Productivity Regions Studies Supply & demand Unemployment Wages & salaries Workers |
| title | Do wages reflect labor productivity? The case of Belgian regions |
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