Wage- Productivity Linkages in Indian Industries
Published: 2012
Author(s) Name: M. Manonmani
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Abstract
This paper examines wage- productivity
linkages in rural, urban
and aggregate industries of India
covering the period
from1998-99 to 2007-08. In order
to clearly understand the
links between wages and productivity
in selected industries, the
study had used a simple step-wise
regression model. Based on the
results obtained it was suggested
that nation-wide linkage of
wages with productivity may be
the best option for neutralization
of a rise in the cost of living. The
productivity of capital and total
factor productivity may be taken
into account along with labour
productivity while granting wage
increase so that wage increase is
not of inflationary nature. Effective
utilization of capital should
be the correct criterion for a
country like India where capital
is a scarce factor.
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