Real Wage

RWG

Note that capital stock and labour are the major inputs in the production process. To derive wages, the following identity is used:

$GFCF/GDP+EMP/GDP=GDP/GDP=1$

Thus,

$\left(GFCF\ast LEP\right)/GDP+\left(EMP\ast RWG\right)/GDP=GDP/GDP=1$

GFCF × LER represents the total value of capital in the economy and EMP × RWG represents the total wage bill in the economy.

This implies that:

$RWG=\left[1-\left(\left(GFCF\ast LER\right)/GDP\right)\right]\left(GDP/EMP\right)=\left[\left(GDP-GFCF\ast LER\right)/EMP\right]$

This calculation was used by Akanabi and Du Toit (2011) as well as Sunde and Akanbi, (2016).

Calculated using, GFCF, GDP, EMP and LER using indicated formula

Productivity

PRD

This is calculated as the ratio of real GDP over total employment (GDP/EMP)

Calculated using GDP and EMP

Consumer Price Index

INF

Consumer price index reflects changes in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at specified intervals, such as yearly. The Laspeyres formula is generally used. Data are period averages.

World Bank-World Development Indicators