The relationship between earnings and labour productivity in textile industry

Abstract

Earnings and labor productivity are important economic indicators, the relationship between them being analyzed by economists, employers and policy makers. The relationship between earnings and labor productivity is important for each region or economic sector, because it influences the living standard and the distribution of income between labor and capital. This paper analyzes the link between gross average earning and labor productivity in the textile industry during 2005‒2016 in Romania. The results of the analysis show that there is a positive, but moderate correlation between gross average earning and labor productivity. For this purpose were used statistical-econometric methods to verify the normality of data series distribution and the existence of a correlation between the indicators analyzed.