Faculty of Economics

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    Labor Productivity and Labor Compensation in North Macedonia: Sectorial Approach
    (Ss Cyril and Methodius University in Skopje, Faculty of Economics - Skopje, 2022-11-11)
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    Starting from the mid-1970s, there has been a significant disbalance in labor markets in almost all world economies. The postulates of classical economics that the causality between labor productivity and workers' compensation is positive, and that the increase in marginal labor productivity is followed by a directly proportional increase in workers' compensation, no longer stand on solid foundations. In the last few decades, there has been a significant distortion of the functional distribution of income, especially between labor and capital. The widely held thesis that "a rising tide will lift all boats," implying that increased labor productivity will be equally distributed among workers, is becoming less relevant. The world, especially EU economies notice a significant disruption in the relationship between productivity growth and labor compensation. In the paper, an attempt is made to analyze the state of the labor market in the Republic of North Macedonia, through the prism of productivity and labor compensation. Given the fact that there are significant differences in the degree of efficiency and productivity in individual sectors, this analysis focuses on the relationship between the distribution of productivity and labor compensation in different industries. Based on the results of the study, the Republic of North Macedonia exhibits the phenomenon of Reverse Decoupling, where the trend of labor productivity lags behind the trend of workers' compensation. In contrast, productivity and workers' compensation show significant differences by different sectors.
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    Do Wages Reflect Growth Productivity – Comparing the European East and West?
    (Taylor & Francis Online, 2023-01-19)
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    Gligorić, Dragan
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    Kozeski, Kristijan
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    The research determines the gap (Great Decoupling) between labour productivity and workers’ compensation in the two blocks of EU countries (Western versus Eastern). The division of countries into two groups provides a basis further to determine whether the previous socio-economic and political evolutionary development of these countries blocks still has a significant impact on the functional distribution of national income, on the extent to which labour productivity growth is transmitted to workers. The results are heterogeneous. In the sample of highly developed Western EU countries where higher levels of labour productivity, as well as high levels of technological development, lead to an increase in labour productivity to be followed by a lower increase in workers’ compensation. On the sample of Eastern EU countries, results indicate different relationships and the strength of causality between productivity and labour compensation. Central-East EU countries had a more positive relationship between real workers’ compensation and labour productivity, compared to the Southeast Europe (Balkan) countries where an increase in workers’ compensation causes a reduction in labour productivity. The results also offer a solid basis for understanding wage/income/productivity relationships d for creating policies for a more efficient distribution of national income.