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    THE MINIMUM WAGE IMPACT ON LABOUR PRODUCTIVITY: THE CASE OF SELECTED SEE COUNTRIES
    (Research Centre in Public Administration and Public Services, Bucharest University of Economic Studies, 2021-09)
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    Kozeski, Kristijan
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    Increasing the statutory minimum wage in most SEE economies, in the same time represents an increase in the main source of income, and providing a higher level of welfare for workers. However, in some SEE countries, despite the unsuitable economic indicators, and the slow recovery from the economic crisis, a sharp increase in the minimum wage is observed. The increase in these countries contributes to the growing part of the workers who receive minimum wage, which additionally burdens the economic system. In addition, the increase of the minimum wage should not be a substitute for the improvement of the conditions on the labor market and the labor market institutions, as well as the insignificant increase of the labor productivity that persistently fails to catch up with the increase of the labor productivity in Western Europe countries. In the previous period, on the example of Bulgaria, Romania, Croatia, North Macedonia, Albania and Serbia, there was a significant increase in the level of the statutory minimum wage. These countries, as economies in which in the previous period the highest rate of increase of the minimum wage was observed, will be the subject of research. Hence, a relationship analysis was conducted between the statutory minimum wage and labour productivity, using a panel-regression model. The countries are divided in two groups: non-EU member countries (North Macedonia, Albania and Serbia) and EU member countries (Bulgaria, Romania and Croatia). These groups are formed according to specific economic criteria (level of GDP and labour mobility) and non-economic criteria (EU membership). The aim of the paper is to discover the correlation and causal relationship between an increase in the statutory minimum wage and labour productivity. The results provide an indicative picture of how governments set the minimum wage, the extent of their increasing, and whether the increase in the minimum wage is to some extent related to the increase in labor productivity. The results indicate that in the first group of countries (North Macedonia, Albania and Serbia) the relationship between statutory minimum wage and labour productivity is strong and positive. Contrary, this relationship is weak and negative in the countries from the second group (Bulgaria, Croatia and Romania). The correlation analysis results are consistent with the estimates from the panel – regression.
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    THE LINK BETWEEN PRODUCTIVITY AND LABOUR SHARE – THE CASE OF NORTH MACEDONIA AND SLOVENIA
    (Faculty of Economics-Skopje, SS. Cyril and Methodius University in Skopje, 2020-11-14)
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    Kozheski, Kristijan
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    Merdzan, Gunter
    The large divergence between productivity and workers’ incomes has been becoming a reality in most countries, not just in the United States after 1980s, where labour productivity grew faster than real wages and employment. The breakdown according to Brynjolfsson and McAfee (2014) is due to technological progress, according to Bivens and Mishel (2015) the growing inequality and according to Baker (2007) the declining labour share in GDP. The main goal of this paper is to find out if the global trend of “The Great Decoupling” between productivity and labour share is a real process in the case of the countries analyzed from the Southeast Europe region. Given that Slovenia is among the most developed countries, while North Macedonia belongs to the group of developing countries that in these stages of development rely on foreign capital and cheap labour, we examine whether the process of “The Great Decoupling” between productivity and labour share is a reality in both countries. From the analysis of the trend of the movement of the average labour productivity of these two countries, it can be concluded that in both countries there is a trajectory of the movement of the labour productivity. Also, from the trend of the movement of the share of labour income and labour productivity in the case of Slovenia and North Macedonia it can be concluded that they indicate the existence of a large gap, i.e. divergence in the trajectory of motion. Also, the gap between labour productivity and the share of labour income in GDP on the example of North Macedonia, if compared to the example of Slovenia is of lower intensity. Finally, based on the results obtained from the conducted econometric analysis, we determine whether there is a need for further research or the phenomenon is a temporary deviation in the dynamics of the gap between labour share and labour productivity.