Real Wage as Determinant of Labour Productivity in the Mexican Tourism

Abstract:     
In this paper we study the effects of real wage on labour productivity for the Mexican Tourism sector. Using yearly data from 1970 to 2004, we find a cointegration relationship showing that average labour productivity depends positively on the real wage. We also show that real wage is weak exogenous and causes labor productivity. Moreover, the impulse-response function shows that a positive shock in real wages produces a small negative effect in productivity for two years followed by a large positive one.

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