Labour Productivity and Investments as Determinants of Wages: A Pool Data Analysis of the Romanian Hotel and Restaurant Sector

Abstract

This paper analyses the factors influencing wages in the hotel and restaurant sector of Romania on the basis of a macroeconomic and regional analysis of gross investments and employment in the tourism industry. The authors constructed a pool data model to investigate the existing relationship between real wages, labour productivity and gross investments in the eight development regions of Romania during 1999–2007. The results may be useful to policy makers and professionals seeking to understand the mechanism of the tourism labour market in Romania and, further, to mobilize the labour force in the sector in order to obtain better results by using appropriate instruments adapted to domestic labour.

Keywords

wages labour productivity investments hotel and restaurant sector pool data analysis Romania

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