عنوان مقاله [English]
According to the economic literature, deviation of wages from labor productivity will cause economic inefficiency. However, evidence from economy of Iranian show the inconsonance between wages and labor productivity and the gap between these variables is increased over time. Accordingly, this study examines the relationship between wages and labor productivity in manufacturing industries of Iranian provinces during 2004-2013. In this paper, first, the effect of productivity on wages (based on classics theories) and then, the impact of wages on productivity (based on efficiency wage theories) will be examined. Employing panel data and feasible generalized least squares (FGLS) method, the results confirm both classics and efficiency wage theories. In other words, wages positively and significantly affected from labor productivity and influenced it, but the coefficient of influencing is larger than the coefficient of affecting. Thus and in terms of policy, the findings suggest the necessity of paying attention to wages in order to increasing labor productivity in manufacturing industries of Iranian provinces.