The Relationship Between Wages and Productivity: TAR Unit Root and TAR Cointegration Approach

Melike Elif Bildirici · Elçin Aykaç

9 citations0/0 files storedRePEc: Research Papers in Economics

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Monetary Policy and Economic Impact Labor market dynamics and wage inequality Economic Growth and Productivity

Abstract

We analyzed the relationship between wages and productivity in 1990 - 2007 period in Turkey. At the first stage we followed the traditional unit root tests and apply the analysis followed by unit root test procedure proposed by Caner and Hansen (2001). Then we discussed the long run nonlinear relationship between wages and productivity by employing the TAR cointegration analysis developed by Hansen and Seo (2002).

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References

1979Distribution of the Estimators for Autoregressive Time Series with a Unit Root 1988Testing for a Unit Root in Time Series Regression 1986Equilibrium Unemployment as a Worker Discipline Device 1992Efficient Tests for an Autoregressive Unit Root 2001LAG Length Selection and the Construction of Unit Root Tests with Good Size and Power 1994Automatic Lag Selection in Covariance Matrix Estimation 1987Time Series Regression with a Unit Root 1996Inference When a Nuisance Parameter Is Not Identified Under the Null Hypothesis

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