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The Causal Effect of Productivity on Wages

This paper examines the causal relationship between productivity and wages in Europe. Utilizing a fixed-effects cross-country regression model, the study incorporates lagged productivity changes alongside control variables to understand their influence on real hourly wage adjustments.

Important modules:

  • "The Causal Effect of Productivity on Wages.pdf": analysis short paper
  • FinalAnalysis/data_cleaning_and_merging.R - merging data from different sources into one .dta dataset
  • FinalAnalysis/cross_country_analysis.do - data analysis, charts and tables generation, models running
  • FinalAnalysis/sources.txt - sources where raw data was taken from

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What is the causal relationship between productivity and wages in Europe? Utilizing a fixed-effects cross-country regression model, the study incorporates lagged productivity changes alongside control variables to understand their influence on real hourly wage adjustments.

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