Keyword

Augmantation of Employees, The Public Function, Purchasing Power, And Vector Auto - Regressive Method

Abstract

Wage policies are at the heart of the problem of economic development. While they undoubtedly led contribute to the development of productivity (a prerequisite for economic growth) to ensure fairness (prerequisite for stable and strengthen social cohesion). In Algeria, during the period of central planning of the economy the situation that prevailed was that of a low level of wages, of course, but with a high thanks to the support prices for commodities purchasing power. situation has totally changed against the reforms that were initiated from the early 1990s and who, remember again, gradually liberalized prices without wages kept pace as it has already been demonstrated, these reforms have led to wage "moderation" has disconnected the evolution of price . The Algeria experienced practically throughout the 1990s, the collapse of real wages, which fell to an annual rate of 10% during the years 1990/1993. While prices increased, workers' incomes stagnated in nominal terms and declined in real terms. The disposable income of households, meanwhile, declined in real terms by -20%. Final consumption of households’ course also decreased from 59.4% of national income in 1995 to 41.3% in Algeria 2004. the purchasing power of Algerian dinar in 1980 was higher than the same dinar today, it is difficult to say a priori whether an individual of that era had a higher standard of living to that of another who earns more today. The public sector is a non-profit sector, by excellence, the


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