Real earnings linked to worker productivity in manufacturing, impacting wages.
The article examines how the productivity of labor and capital in manufacturing industries in Victoria, Australia, affects wages and real earnings. The researchers found a correlation between the productivity of workers and their wages, suggesting that higher productivity leads to higher earnings. They also discuss potential reasons for discrepancies between predicted productivity and actual wages. Additionally, the study addresses criticisms from other scholars and explores the impact of rising interest rates on productivity.