If the value-added per worker increases along with an improvement in productivity, firms’ profitability will be enhanced accordingly. From a somewhat longer-term perspective, once firms have additional profits, they will start to consider raising wages in a manner that is consistent with an improvement in productivity.
Benjamin E Diokno: Launch of the first Digital Financial Inclusion Awards Speech by Mr Benjamin E Diokno, Governor of Bangko Sentral ng Pilipinas (BSP, the central bank of the Philippines), at the launch of the first Digital Financial Inclusion Awards, Manila, 13 March 2022.