Original scientific paper
https://doi.org/10.1080/1331677X.2020.1804427
The missing link between wages and labour productivity in tourism: evidence from Croatia and Slovenia
Sergej Gričar
orcid.org/0000-0003-1410-6300
Violeta Šugar
orcid.org/0000-0003-1410-6300
Štefan Bojnec
orcid.org/0000-0002-1270-6372
Abstract
The present article aims to analyse wage-labour productivity causalities in Croatia and Slovenia using cointegration methods based
on monthly time series data of variables for labour productivity
and real gross wages in tourism industry during the period
December 1999–January 2020. The data vector is integrated by
chain indices with the constant base January 2000 ¼ 100. A stochastic trend and shocks are covered in the analysis. Shocks are
linked to the European Union accession, and economic crisis following with overwhelmed tourist arrivals. The contribution of the
research is two-fold. First, the equations for at most normal distributed variables of labour productivity and real wages in tourism
are exposed. Three spatial cointegration relations confirm labour
productivity integrity of the regional tourism market. Second,
pair-wise causalities indicate one cointegrated vector for labour
productivity, which drives real gross wages in tourism sub-industries. These results suggest that for a higher non-seasonal assessment of real gross wage, the labour productivity should rise, i.e.
less workers, more robotization or more tourist arrivals with better
quality solutions. These findings are at most important to be
implemented after the COVID-19 infection crisis with expected
restructurings and digital transformation in the tourism industry.
Keywords
Croatia; error correction model (ECM); real gross wage; labour productivity; Slovenia; vector error correction model (VECM)
Hrčak ID:
301188
URI
Publication date:
31.12.2021.
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