Productivity linked wage in manufacturing sector

The objective of the paper is to analyse the linkage between wage and labour productivity in Manufacturing sector in Odisha using time series data from 1998–99 to 2008–09. Most important variables which have been taken for the observation are number of workers, wages to workers and net value added in particular year. It is observed that the correlation co-efficient is 0.883 which signifies that wages paid to workers and labour productivity is highly positively correlated in manufacturing sector of Odisha. Productivity-linked wages has become an important choice for enterprises to increase profit. Linking productivity and wages has a positive effect on the economy.