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How effective are labor wages on labor productivity?: an empirical investigation on the construction industry of New Zealand

This study empirically investigates (for the period of 1983–2017) the relationships between the parameters (labour wage (LW), labour productivity (LP) and unemployment (UNM) rate) of the construction sector in New Zealand. This study employs the Johansen co-integration test to determine if t...

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Main Authors: Ozturk, M., Durdyev, S., Nuri Aras, O., Ismail, S., Banaitiene, N.
Format: Article
Published: VGTU Press 2020
Subjects:
T Technology (General)
Online Access:http://eprints.utm.my/id/eprint/86934/
https://dx.doi.org/10.3846/tede.2020.11917
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spelling my.utm.869342020-10-22T04:18:31Z http://eprints.utm.my/id/eprint/86934/ How effective are labor wages on labor productivity?: an empirical investigation on the construction industry of New Zealand Ozturk, M. Durdyev, S. Nuri Aras, O. Ismail, S. Banaitiene, N. T Technology (General) This study empirically investigates (for the period of 1983–2017) the relationships between the parameters (labour wage (LW), labour productivity (LP) and unemployment (UNM) rate) of the construction sector in New Zealand. This study employs the Johansen co-integration test to determine if the relationship in the long run does exist among the investigated variables as well as to assess the relationships. The results show that the LW has a positive effect on the LP, while the UNM affects negatively, which indicates that the higher salary, the more productive labour. In other words, increase in salary stimulates the belief of the workforce that they are substantially paid for their work, which ultimately increases their trust and loyalty to the employer; hence, productivity. Moreover, the results show adverse effect of UNM on LP, which indicates that labours may also lose his/her productivity due to fear of losing his/her job. The model stability is verified by Histogram Normality Test, Breusch-Godfrey Serial Correlation, Heteroscedasticity Breusch-Pagan-Godfrey tests. Thus, the forefront of the construction sector is recommended to consider the empirical relationships determined in this study in order to improve the productivity level at various levels. VGTU Press 2020 Article PeerReviewed Ozturk, M. and Durdyev, S. and Nuri Aras, O. and Ismail, S. and Banaitiene, N. (2020) How effective are labor wages on labor productivity?: an empirical investigation on the construction industry of New Zealand. Technological and Economic Development of Economy, 26 (1). pp. 258-270. ISSN 2029-4913 https://dx.doi.org/10.3846/tede.2020.11917 DOI:10.3846/tede.2020.11917
institution Universiti Teknologi Malaysia
building UTM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Malaysia
content_source UTM Institutional Repository
url_provider http://eprints.utm.my/
topic T Technology (General)
spellingShingle T Technology (General)
Ozturk, M.
Durdyev, S.
Nuri Aras, O.
Ismail, S.
Banaitiene, N.
How effective are labor wages on labor productivity?: an empirical investigation on the construction industry of New Zealand
description This study empirically investigates (for the period of 1983–2017) the relationships between the parameters (labour wage (LW), labour productivity (LP) and unemployment (UNM) rate) of the construction sector in New Zealand. This study employs the Johansen co-integration test to determine if the relationship in the long run does exist among the investigated variables as well as to assess the relationships. The results show that the LW has a positive effect on the LP, while the UNM affects negatively, which indicates that the higher salary, the more productive labour. In other words, increase in salary stimulates the belief of the workforce that they are substantially paid for their work, which ultimately increases their trust and loyalty to the employer; hence, productivity. Moreover, the results show adverse effect of UNM on LP, which indicates that labours may also lose his/her productivity due to fear of losing his/her job. The model stability is verified by Histogram Normality Test, Breusch-Godfrey Serial Correlation, Heteroscedasticity Breusch-Pagan-Godfrey tests. Thus, the forefront of the construction sector is recommended to consider the empirical relationships determined in this study in order to improve the productivity level at various levels.
format Article
author Ozturk, M.
Durdyev, S.
Nuri Aras, O.
Ismail, S.
Banaitiene, N.
author_facet Ozturk, M.
Durdyev, S.
Nuri Aras, O.
Ismail, S.
Banaitiene, N.
author_sort Ozturk, M.
title How effective are labor wages on labor productivity?: an empirical investigation on the construction industry of New Zealand
title_short How effective are labor wages on labor productivity?: an empirical investigation on the construction industry of New Zealand
title_full How effective are labor wages on labor productivity?: an empirical investigation on the construction industry of New Zealand
title_fullStr How effective are labor wages on labor productivity?: an empirical investigation on the construction industry of New Zealand
title_full_unstemmed How effective are labor wages on labor productivity?: an empirical investigation on the construction industry of New Zealand
title_sort how effective are labor wages on labor productivity?: an empirical investigation on the construction industry of new zealand
publisher VGTU Press
publishDate 2020
url http://eprints.utm.my/id/eprint/86934/
https://dx.doi.org/10.3846/tede.2020.11917
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score 13.211869

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