In this paper the issue of causality between wages and prices in R. Macedonia has been tested. OLS relationship between … prices and wages is positive; productivity is not significant in determination of prices or wages too. Engle-Granger test …

This article provides evidence about the interrelationships between wages and prices at the microeconomic level. We … magnitude of wage changes strongly depends on macroeconomic variables, namely inflation and unemployment, and to a lesser extent … production and the industry level inflation, have a weaker influence …