Abstract
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. JEL codes: J24; J31; J5; R23
| Original language | English |
|---|---|
| Article number | 11 |
| Journal | IZA Journal of European Labor Studies |
| Volume | 3 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - Dec 1 2014 |
| Externally published | Yes |
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ASJC Scopus subject areas
- Economics and Econometrics
- Industrial relations
- Organizational Behavior and Human Resource Management
Cite this
Do wages reflect labor productivity? The case of Belgian regions. / Konings, Jozef; Marcolin, Luca.
In: IZA Journal of European Labor Studies, Vol. 3, No. 1, 11, 01.12.2014.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Do wages reflect labor productivity? The case of Belgian regions
AU - Konings, Jozef
AU - Marcolin, Luca
PY - 2014/12/1
Y1 - 2014/12/1
N2 - 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. JEL codes: J24; J31; J5; R23
AB - 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. JEL codes: J24; J31; J5; R23
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UR - http://www.scopus.com/inward/citedby.url?scp=84983372002&partnerID=8YFLogxK
U2 - 10.1186/2193-9012-3-11
DO - 10.1186/2193-9012-3-11
M3 - Article
VL - 3
JO - IZA Journal of European Labor Studies
JF - IZA Journal of European Labor Studies
SN - 2193-9012
IS - 1
M1 - 11
ER -