Research Article
What Are the Causal Effects of the Average Wage Increase on Regional GDP, Specifically During the Covid-19 Crisis? Empirical Evidence from New Zealand.
@INPROCEEDINGS{10.4108/eai.18-11-2022.2326748, author={Rui Ma}, title={What Are the Causal Effects of the Average Wage Increase on Regional GDP, Specifically During the Covid-19 Crisis? Empirical Evidence from New Zealand.}, proceedings={Proceedings of the 4th International Conference on Economic Management and Model Engineering, ICEMME 2022, November 18-20, 2022, Nanjing, China}, publisher={EAI}, proceedings_a={ICEMME}, year={2023}, month={2}, keywords={average wage increase; covid-19 crisis; new zealand}, doi={10.4108/eai.18-11-2022.2326748} }- Rui Ma
Year: 2023
What Are the Causal Effects of the Average Wage Increase on Regional GDP, Specifically During the Covid-19 Crisis? Empirical Evidence from New Zealand.
ICEMME
EAI
DOI: 10.4108/eai.18-11-2022.2326748
Abstract
This paper uses empirical evidence and the difference in difference estimation (DID) to examine the causal effect of the average wage on GDP before and after the Covid-19 crisis. The research is conducted by regions, including New Zealand as a whole, the Auckland region and the Wellington region separately. The results show before the pandemic, an increase in wage leads to a rise in GDP in all three areas. After the pandemic, although average wage and GDP still have a positive relationship in New Zealand, for Auckland and Wellington, this relationship is negative. This is likely due to the fact that Auckland and Wellington’s tertiary industries based economy type is more affected by the Covid-19 crisis.
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