The productivity-wage and productivity-employment nexus : a panel data analysis of Indian manufacturing

Bhattacharya, Mita, Narayan, Paresh Kumar, Popp, Stephan and Rath, Badri 2011, The productivity-wage and productivity-employment nexus : a panel data analysis of Indian manufacturing, Empirical Economics, vol. 40, no. 2, pp. 285-303.

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Title The productivity-wage and productivity-employment nexus : a panel data analysis of Indian manufacturing
Author(s) Bhattacharya, Mita
Narayan, Paresh Kumar
Popp, Stephan
Rath, Badri
Journal name Empirical Economics
Volume number 40
Issue number 2
Start page 285
End page 303
Total pages 19
Publisher Physica-Verlag GmbH und Co.
Place of publication Heidelberg, Germany
Publication date 2011-04
ISSN 0377-7332
1435-8921
Keyword(s) Labour productivity
Real wages
Panel unit root tests
Panel cointegration tests
Manufacturing
Summary This article investigates the long-run relationship between labour productivity and employment, and between labour productivity and real wages in the case of the Indian manufacturing sector. The panel data set consists of 17 two-digit manufacturing industries for the period 1973–1974 to 1999–2001. We find that productivity-wages and productivity-employment are panel cointegrated for all industries. We find that both employment and real wages exert a positive effect on labour productivity. We argue that flexible labour market has a significant influence on manufacturing productivity, employment and real wages in the case of Indian manufacturing.
Language eng
Field of Research 150202 Financial Econometrics
Socio Economic Objective 910404 Productivity (excl. Public Sector)
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2010, Springer-Verlag
Persistent URL http://hdl.handle.net/10536/DRO/DU:30040247

Document type: Journal Article
Collections: Faculty of Business and Law
School of Accounting, Economics and Finance
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