Effect of wage-productivity gap on unemployment: evidence from emerging economies
The objectives of this study are to constructs the wage-productivity gap and its threshold effect on unemployment in emerging economies. The analysis involved the cross-section threshold regression method among 47 emerging economies from 2016 to 2018, where the Total Factor Productivity (TFP)/produc...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2024
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| Online Access: | http://journalarticle.ukm.my/24427/ http://journalarticle.ukm.my/24427/1/JM_2.pdf |
| _version_ | 1848816100041555968 |
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| author | Hafizah Sith, Hazrul Izuan Shahiri, Wye, Chung Khain Zulkefly Abdul Karim, |
| author_facet | Hafizah Sith, Hazrul Izuan Shahiri, Wye, Chung Khain Zulkefly Abdul Karim, |
| author_sort | Hafizah Sith, |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | The objectives of this study are to constructs the wage-productivity gap and its threshold effect on unemployment in emerging economies. The analysis involved the cross-section threshold regression method among 47 emerging economies from 2016 to 2018, where the Total Factor Productivity (TFP)/productivity is derived using the DEA Malmquist Productivity Index to generate the wage-productivity gap. The results demonstrate that as the wage-productivity gap widens and exceeds the negative threshold level with stronger productivity growth compared to wage growth, the unemployment rate rises. These results show that to keep the unemployment rate at the most manageable level, emerging economies must reduce the wage-productivity gap within the ideal range or threshold level. This gap is a significant indicator that impacts the unemployment rate and, consequently, contributes to enhancing workers’ productivity, income, and living standards. |
| first_indexed | 2025-11-15T01:00:30Z |
| format | Article |
| id | oai:generic.eprints.org:24427 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T01:00:30Z |
| publishDate | 2024 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:244272024-10-22T08:35:32Z http://journalarticle.ukm.my/24427/ Effect of wage-productivity gap on unemployment: evidence from emerging economies Hafizah Sith, Hazrul Izuan Shahiri, Wye, Chung Khain Zulkefly Abdul Karim, The objectives of this study are to constructs the wage-productivity gap and its threshold effect on unemployment in emerging economies. The analysis involved the cross-section threshold regression method among 47 emerging economies from 2016 to 2018, where the Total Factor Productivity (TFP)/productivity is derived using the DEA Malmquist Productivity Index to generate the wage-productivity gap. The results demonstrate that as the wage-productivity gap widens and exceeds the negative threshold level with stronger productivity growth compared to wage growth, the unemployment rate rises. These results show that to keep the unemployment rate at the most manageable level, emerging economies must reduce the wage-productivity gap within the ideal range or threshold level. This gap is a significant indicator that impacts the unemployment rate and, consequently, contributes to enhancing workers’ productivity, income, and living standards. Penerbit Universiti Kebangsaan Malaysia 2024 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/24427/1/JM_2.pdf Hafizah Sith, and Hazrul Izuan Shahiri, and Wye, Chung Khain and Zulkefly Abdul Karim, (2024) Effect of wage-productivity gap on unemployment: evidence from emerging economies. Jurnal Ekonomi Malaysia, 58 (2). ISSN 0127-1962 https://www.ukm.my/jem/latest-published-e/ |
| spellingShingle | Hafizah Sith, Hazrul Izuan Shahiri, Wye, Chung Khain Zulkefly Abdul Karim, Effect of wage-productivity gap on unemployment: evidence from emerging economies |
| title | Effect of wage-productivity gap on unemployment: evidence from emerging economies |
| title_full | Effect of wage-productivity gap on unemployment: evidence from emerging economies |
| title_fullStr | Effect of wage-productivity gap on unemployment: evidence from emerging economies |
| title_full_unstemmed | Effect of wage-productivity gap on unemployment: evidence from emerging economies |
| title_short | Effect of wage-productivity gap on unemployment: evidence from emerging economies |
| title_sort | effect of wage-productivity gap on unemployment: evidence from emerging economies |
| url | http://journalarticle.ukm.my/24427/ http://journalarticle.ukm.my/24427/ http://journalarticle.ukm.my/24427/1/JM_2.pdf |