Proceedings of the 6th Annual International Conference on Social Science and Contemporary Humanity Development (SSCHD 2020)

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What is the Relationship Among Wages, Supplementary Labor Income, Unemployment and Productivity?

Evidence From Canadian Manufacturing

Authors
Huixuan Xie
Corresponding Author
Huixuan Xie
Available Online 23 January 2021.
DOI
10.2991/assehr.k.210121.006How to use a DOI?
Keywords
Productivity, Labor wage, Supplementary labor income, Unemployment rate, Manufacturing industry, Canada
Abstract

This study investigated the relationship between the labor wage (LC), supplementary labor income (SLI), unemployment rate (UN), and labor productivity (LP) of the manufacturing industry in Canada, using time-series econometric techniques. This study was based on the Vector Autoregression Model (VAR) and applied Granger causality Wald tests. Then tested the validity and stability of the model. The results show that all variables did not significantly affect productivity except the first order of itself and labor wages, which indicated that increasing wages improve the passions for work. Moreover, the positive relation between LW and UN presented that the ascending cost of labors decreased the demand of workers, so the unemployment rate raised. However, SIL, which is the difference between LW and labor compensation, ignoring the self-employed income, followed the converse results of LW. The first-order lag of productivity drove a decrease in the unemployment rate. Therefore, policymakers in the manufacturing industry could reconsider the relationships described in this study to adjust productivity and unemployment effectively.

Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 6th Annual International Conference on Social Science and Contemporary Humanity Development (SSCHD 2020)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
23 January 2021
ISBN
978-94-6239-320-2
ISSN
2352-5398
DOI
10.2991/assehr.k.210121.006How to use a DOI?
Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Huixuan Xie
PY  - 2021
DA  - 2021/01/23
TI  - What is the Relationship Among Wages, Supplementary Labor Income, Unemployment and Productivity?
BT  - Proceedings of the 6th Annual International Conference on Social Science and Contemporary Humanity Development (SSCHD 2020)
PB  - Atlantis Press
SP  - 31
EP  - 37
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210121.006
DO  - 10.2991/assehr.k.210121.006
ID  - Xie2021
ER  -