Monday 16 May 2011

The relationship between wages and output in Mexico (1970-2007)

The output has a positive relationship with invesment, and this has two indirected relationship with wages; one positive and other negative:

Positive: Increment wages makes workers can buy more things, so companies are want to increment his product though more investment.

Negative: Increment wages makes reduce the companies profits, so they are going to reduce their output and their investment.

So, we want to know, which relationship has had the output which wages or if it has been a mix.

No comments:

Post a Comment