Analysis of the effects of wages on the productivity in manufacturing industry: A sector-specific implementation in Turkish manufacturing industry

Organizations have to adapt themselves to changes in economic, social and technological fields in order to sustain their existence. Human resource is the leading element among the critically important ones which are crucial for this process of adaptation. The prices which is necessary to be paid for the human resource is called wage. Wage is not only the price paid for labor but is a multi-dimensional concept.While efficiency is the main element of protecting sustainable economic development and price stability in developed countries, it is an effective tool to solve development problems including structural changes in developing countries. Efficieny also holds a critically important place in organizations whose main objective is to profit. Nowadays organizations try to increase efficiency by boosting the performance of their employees and to do so, they associate their strategies, which are based on performance evaluation systems, directly with wage systems.Firstly, this study examines the extent of correspondence between OECD?s technology classification which is based on sectoral R&D expenditure and technological coefficients which are acquired by using the Cobb-Douglas functional form of production functions. Thereafter, the relation between the technology classification and the share of wages in value added which is generated in sectors is examined.In this study, the relations between wage and efficiency, and performance indicators are tested by grouping themselves differently. For this purpose, technology classification and the positions of employees in sectors as `blue collar? or `white collar? are designated as grouping variables.In the next phase, in order to conduct a comprehensive wage-efficiency relation analysis, wage standards which are accepted by the European Industry Federations are used. Based on this model, in addition to employee efficiency, the relation between the performance of data at the sectoral and national level and wage structure are probed.For the last section of this study, examinations are conducted for the sub-sectors of manufacturing industry and for the Manufacturing of chemical substances and products sector of no.24, by questioning the relations between the variables of `real income per capita? and `value-added output per capita?.