Abstract
AbstractThis paper investigates the public-private remuneration patterns in South Africa with time-series methods for the first time since the introduction of an inflation-targeting framework in 2000. Co-integration tests and analysis confirm that there is a stable, long-run relationship between nominal and real remuneration in the public and private sector. The adjustment to the deviations from this long-run relationship is strong and significant for public-sector remuneration, while private-sector wages neither respond to deviations from the long-run relationship nor lagged changes in public-sector remuneration. The causal direction from private- to public-sector remuneration does not change if real earnings are calculated with the gross domestic product deflator. This is confirmed by simple Granger-causality tests.
Funder
South African Reserve Bank
Publisher
Springer Science and Business Media LLC
Subject
General Economics, Econometrics and Finance
Reference30 articles.
1. Afonso, A., & Gomes, P. (2014). Interactions between private and public sector wages. Journal of Macroeconomics, 39(PA), 97–112.
2. Agudelo, S.-A., & Sala, H. (2016). Wage setting in the Colombian manufacturing industry. The Economics of Transition, 24(1), 99–134.
3. Ahrend, R., de Rosa, D., & Tompson, W. (2007). Russian manufacturing and the threat of ‘Dutch Disease': A comparison of competitiveness developments in Russian and Ukrainian industry. OECD Economics Department working papers, no. 540, Paris: OECD Publishing. https://www.oecd-ilibrary.org/docserver/322823013852.pdf?expires=1593429966&id=id&accname=guest&checksum=A903A5C0797C29CC9D19087DAC430949. Accessed 5 Jan 2020.
4. Alm, J., & Embaye, A. (2010). Explaining the growth of government spending in South Africa. South African Journal of Economics, 78(2), 152–169.
5. Biesenbeek, C., & Werff, S. (2019). Public–private wage differentials: Evidence from the Netherlands. De Economist, 167(1), 23–43 Springer.
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献