Real Wages as Determinant of Labour Productivity in the Mexican Tourism Sector

In this paper we use time-series techniques to estimate the long-run relationship between real wages and labour productivity in the Mexican tourism. Using yearly data from 1970 to 2004, we find a cointegration relationship showing that the average labour productivity depends positively on real wages. We show that real wage is weakly exogenous and causes labour productivity. Moreover, the impulse-response function shows that a positive shock in real wages produces a small negative effect in productivity for two years followed by a large positive one.