MINIMUM WAGE AND MANUFACTURING LABOR SHARE: EVIDENCE FROM NORTH MACEDONIA

被引:0
作者
Petreski, Marjan [1 ,2 ,3 ]
Pehkonen, Jaakko [4 ]
机构
[1] Univ Amer Coll Skopje, Skopje, North Macedonia
[2] Finance Think Econ Res & Policy Inst, Skopje, North Macedonia
[3] Partnership Econ Pol, Surrey, BC, Canada
[4] Univ Jyvaskyla, Jyvaskyla, Finland
来源
EKONOMSKA MISAO I PRAKSA-ECONOMIC THOUGHT AND PRACTICE | 2024年 / 33卷 / 02期
关键词
labor share; capital endowment; minimum wage; North Macedonia; UNEMPLOYMENT; EUROPE; FALL; RISE;
D O I
10.17818/EMIP/2024/2.2
中图分类号
F [经济];
学科分类号
02 ;
摘要
The objective of the paper is to understand whether the minimum wage plays a role in the labor share in the manufacturing sector in North Macedonia. We decompose the movements of the labor share into those along a share-capital curve, shifts of this locus, and deviations from it. We use the capital-output ratio, total factor productivity and input prices to capture these factors, while the minimum wage is introduced as an element that shifts the curve. We estimate a panel of 20 manufacturing branches over the period 2012-2019 with FE, IVand system-GMM estimators. We find that the role of the minimum wage for the labor share is industry-specific. In labor-intensive and low-paid industries, it increases workers' labor share, which corresponds to a complementarity between capital and labor. For capital-intensive branches, it reduces labor share, likely through the job loss channel and along a substitutability between labor and capital. This applies to both branches where foreign investment and heavy industry are integrated.
引用
收藏
页码:377 / 402
页数:26
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