<p>This is a question about correlation versus causation. There seems to be a correlation between productivity and wages, but that doesn't tell us about the causation. The question <a href="https://en.wikipedia.org/wiki/Post_hoc_ergo_propter_hoc" rel="nofollow noreferrer">implicitly assumes</a> that causation runs from productivity to wages. If that isn't true, then increasing productivity won't cause wages to rise.</p>
<p>That begs the question of why the correlation exists. Its possible that causation runs in the opposite direction. Or there might be a lag. Or there might be some third factor which influences both.</p>

CC BY-SA 4.0
2023-06-14T16:22:34.527Z
2023-06-14T16:22:34.527Z
Paul Johnson
<p>As you can see in this report: <a href="https://rpubs.com/lovepeacejoy404/crescita_salariale" rel="nofollow noreferrer">https://rpubs.com/lovepeacejoy404/crescita_salariale</a> between labor productivity and the average wage there is a correlation of 76% (Pearson index), while with the minimum wage there is a correlation by 84%. As far as labor productivity is concerned, the correlation works for France, Germany and the United States in the sense that the average salary also grows as productivity increases, but in Italy and Spain, although productivity does increase, the average wage does not. I would like to know why and if, given the 84% correlation with the increase in the minimum wage, the average wage would also grow. Thank you</p>

<macroeconomics><wages><productivity>
Why in Italy and Spain, as productivity grows, wages don't grow too?
gianni404
# Why in Italy and Spain, as productivity grows, wages don't grow too?

(Asked by: username_0 on 2023-06-14)

As you can see in this report: <https://rpubs.com/lovepeacejoy404/crescita_salariale> between labor productivity and the average wage there is a correlation of 76% (Pearson index), while with the minimum wage there is a correlation by 84%. As far as labor productivity is concerned, the correlation works for France, Germany and the United States in the sense that the average salary also grows as productivity increases, but in Italy and Spain, although productivity does increase, the average wage does not. I would like to know why and if, given the 84% correlation with the increase in the minimum wage, the average wage would also grow. Thank you

**Tags:** macroeconomics, wages, productivity

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## 1 answers

### Answer by username_1 on 2023-06-14. Score: -1

This is a question about correlation versus causation. There seems to be a correlation between productivity and wages, but that doesn't tell us about the causation. The question [implicitly assumes](https://en.wikipedia.org/wiki/Post_hoc_ergo_propter_hoc) that causation runs from productivity to wages. If that isn't true, then increasing productivity won't cause wages to rise.

That begs the question of why the correlation exists. Its possible that causation runs in the opposite direction. Or there might be a lag. Or there might be some third factor which influences both.


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