Labour Productivity, Wages and Unemployment: an Empirical Investigation for Greece Using Causality Analysis
نویسنده
چکیده
In this paper an effort is made in order to investigate the nexus of dynamic interrelations between the general macroeconomic environment of Greek economy with a special reference to the real wages determination. For the causality analysis among real wages, consumer price index, labour productivity, unemployment rate and gross domestic product a multivariate autoregressive VAR model was used, covering the period 1960:I until 2000:IV. Granger causality tests based on error correction models (ECM) showed that there is a ‘strong’ Granger causal relation among labour productivity, real wages, rate of unemployment and gross domestic product as well as between real wages and unemployment rate and also among unemployment rate, real wages and gross domestic product. keywords: labour productivity, real wages, unemployment, error correction model, Granger causality
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