مرکز منطقه ای اطلاع رساني علوم و فناوري - The Correlation between National Income and Wage in Turkey Economy

Abstract :

The objective of the study is to examine the correlation between the national income and wages in Turkey economy within the sampling period of 2002Q1-2015Q4. Toward this objective, the correlation between time series of 56 observation were analysed using Engle-Granger and Johansen cointegration testing in the long term and Error Correction Model in the short term. Findings obtained through cointegration testing for the correlation reflecting long term between the national income and the wages; allow creating a single cointegrated equation among variables. The finding of long term correlation has allowed us to conclude that there was a trend of variables parallel variation. Error Correction Model has been established to determine the degree of consequent cointegration and its speed of occurrence. The obtained -0.391 error term coefficient indicate that approximate %4 of 1 unit deviation on the short term disparity get better in the following period.