Abstract

VERA, Leonardo  and  VERA, Juan Andrés. Labor productivity and real wage: causal relationships in Venezuela. Prob. Des [online]. 2021, vol.52, n.205, pp.27-53.  Epub Aug 23, 2021. ISSN 0301-7036.  https://doi.org/10.22201/iiec.20078951e.2021.205.69620.

The discipline of economics has struggled to find a clear or well-established causal relationship between labor productivity and the real wage, despite the close statistical relationship and comovements that several studies report. The policy implications vary drastically depending on what causal link may exist between the two variables. Using conventional Granger causality tests and causality tests in a cointegration environment, with both annual and quarterly data for Venezuela, this article presents evidence showing that statistical causality runs from real wages to labor productivity, a finding which contrasts the orthodox thinking on the subject.

Keywords : Venezuela; labor productivity; wages; Granger causality tests.

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