Exploring the Effect of the Terms of Trade on the Decoupling of Wage Growth and Productivity Growth by Quantile Regression

  • 黃 譯漫

Student thesis: Doctoral Thesis

Abstract

The decoupling of wage growth and productivity growth is defined as the gap between the growth of the real wage rate and the growth of labor productivity and can be decomposed into three variables: the share of labor compensation the ratio of wage to labor compensation and the in relative price of output to consumption About the relative price of output to consumption it is indicated as the ratio of GDP deflator to CPI and can be interpreted as terms of trade To explore the effect of terms of trade on the decoupling the wage growth and productivity growth this research uses the aggregate data of United State Japan South of Korea and Taiwan to explore the relation of the related variables of terms of trade (exchange rate net terms of trade the ratio of the private consumption deflator to CPI) and the GDP deflator to CPI by quantile regression After examining the relation between related variables of terms of trade and the ratio of GDP deflator to CPI this research uses the same method to explore the effect of terms of trade on the decoupling Results suggested if we want to investigate the effect of the independent variables on the dependent variable we should stress the representative variable of terms of trade as well as the difference of economy in different countries Moreover the ratio of the private consumption deflator to CPI has strong effect on the decoupling of wage growth and productivity growth in Taiwan
Date of Award2020
Original languageEnglish
SupervisorChang-Ching Lin (Supervisor)

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