APPLICATION OF MULTIPLE REGRESSION ANALYSIS IN ORDER TO EXAMINE THE IMPACT OF SALARIES AND PENSIONS ON THE NUMBER OF EMPLOYEES IN THE FEDERATION OF BOSNIA AND HERZEGOVINA

• Published in: Quaestus (Timio̦ara) 2021-06 (19), p.193-202
• Main Authors: Obhoðaš, Ibrahim, Radosavac, Adriana, Obhoðaš, Azra
• Format: Article
• Language: English
• Subjects: Data analysis; Dependent variables; Economic development; Employees; Employment; Independent variables; Linear algebra; Mathematical functions; Random variables; Regression analysis; Statistical methods; Trends
• ISSN: 2285-424X; 2343-8134

The phenomenon of employment trends, and the factors that affect it, is an inexhaustible source of scientific analysis and proof ofvarious theories. In this study, three parameters are taken into consideration - the average pension, the average net salary and the number of employees in the Federation of Bosnia and Herzegovina (FBiH) for the period from 1997 until today. This period can be considered as a representative because it covers more than 20 years. According to all indicators, if the number of employees follow the average net salary, as well as the average pension, it can be concluded that there is a harmonious growth which is not caused by any market imbalance. Every other scenario is not desirable for the economy as a whole. In this study, one ofthe statistical methods applied together with the mathematical function measures the impact of the average net salary and pension on the number of employees in the Federation of Bosnia and Herzegovina, based on availability of particular data. The higher value of the resulting coefficient demonstrates its greater influence on relations between employment and the average net salary as well as between employment and the average net pension. Additionally, all of the mathematical coefficients were tested by an appropriate statistical test which shows whether this coefficient is statistically significant or not. In case it is not, then there is no relationship between the analyzed variables. The aim of this study is to prove at what extent growth of both - the average net salary and the average pension, has an impact on the number of employees, and whether the growth is based on solid economic prosperity or it is case where inflation is increasing, pushing prices upwards. It is important to emphasize that it is possible that both parameters are represented, but this will also be shown by the resulting coefficient. If its impact value between high and low (balanced), then the combination of economic development and mild inflation is the answer to this question. The hypothesis of this study will be that the average pension and the average net salary have a medium impact on the number of employees, which ultimately shows that it is based on economic development and mild inflation.