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The relationship between labor compensation and productivity: an empirical study of 30 industries in the U.S.
Mälardalens högskola, Akademin för ekonomi, samhälle och teknik.ORCID-id: Farrukh Zakirov
2013 (engelsk)Independent thesis Basic level (degree of Bachelor), 10 poäng / 15 hpOppgaveAlternativ tittel
The relationship between labor compensation and productivity: an empirical study of 30 industries in the U.S. (engelsk)
Abstract [en]

Positive relationship between labor productivity and worker compensation has been puzzled

by economists for a long time. On the one hand, some senior economists reckon that

compensation stagnates or does not rise properly while productivity grows swiftly in many

industries of the U.S. This may be due to the fall in bargaining power of workers as supply for

labor exceeds demand. On the other hand, other economists argue that if fundamental

factors like appropriate price deflator is taken into account when exploring trends for

productivity enhancements and compensation rises, the line of growth for both should be

identical, specifically, increases in compensation need to follow growth in productivity at the

national level as theories predict it. This implies that workers benefit from productivity

growth at the aggregate level. This paper analyzes the dynamics of productivity gains and

compensation rises by discussing various theoretical relationships. Applying the data from

the U.S government agency, the Bureau of Labor Statistics, an empirical approach will be

conducted in order to investigate the effects of productivity growth and other influential

factors on annual compensation per worker

sted, utgiver, år, opplag, sider
2013. , s. 38
Emneord [en]
compensation, productivity
HSV kategori
Identifikatorer
URN: urn:nbn:se:mdh:diva-19461OAI: oai:DiVA.org:mdh-19461DiVA, id: diva2:631459
Fag / kurs
Ekonomi för hållbar utveckling
Presentation
(engelsk)
Veileder
Examiner
Tilgjengelig fra: 2013-06-27 Laget: 2013-06-20 Sist oppdatert: 2013-06-27bibliografisk kontrollert

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