Analytical View on the Level and Changes in Labor Incomes in the Context of Sectoral Breakdown
AbstractThe size of work income of Slovak households varies year-on-year, between sectors and between territorial units. However, regional and sectoral wage differences are different. Wage is always the result of a combination of several market and non-market factors. In the short term, wage reflects the value of the marginal product of labor, in the long run the decisive factor in the wage level is labor productivity. In the analysis performed in this study, it is monitored the sensitivity of the wage to changes in labor productivity in the conditions of the Slovak Republic. As sectoral employment and the labor market situation are considered to be important factors in the short term, in further analyzes we monitored the relationship between wages and industry performance indicators as well as labor market indicators in order to identify the decisive determinants of wages in the evaluated sectors. The current state and development in the explained and explanatory variables are quantified by a simple and multiple regression model, the results of which are supplemented by selected moment characteristics. Based on the results of the analyzes, we concluded that the certain group of monitored parameters have a positive impact on the sectoral nominal wage. The strength of their influence depends on whether they are low-capital service industries or manufacturing, usually technology-intensive industries. In addition, it is influenced by current economic trends, which we consider to limit the general validity of the conclusions of the analyses.
. E. Łaszkiewicz. “Determinants of hourly wages inequality in selected European metropolises. The results from the multilevel modelling”. Equilibrium. Quarterly Journal of Economics and Economic Policy, vol.11, pp. 853-869, 2016.
. Statistical Office of the Slovak Republic. “Wage by economic activity collected through workplace method”. Internet: http://datacube.statistics.sk/#!/view/en/VBD_SK_WIN/np3110rr/v_np3110rr_00_00_00_en, 2021 [Jan. 07, 2021].
. OECD. “Wage levels”. Internet: https://data.oecd.org/earnwage/wage-levels.htm, 2021 [Jan. 07, 2021].
. C. Anyakoha. “Job analysis as a tool for improved organizational performance of SMEs in Lagos, Nigeria”. Central European Journal of Labour Law and Personnel Management, vol. 2, pp. 7-16, 2019.
. M. Daňová, I. Kravčáková Vozárová and R. Vavrek. “Štúdia vzťahu medzi pracovnými príjmami a odvetvovou štruktúrou v podmienkach Slovenskej republiky”. Journal of Global Science, vol. 4, pp. 1-7, 2019.
. K. Melichová, M. Hrivnák and O. Roháčiková. “Multiplier effects and economic impact of university spending – case study of sectoral and spatial aspects of expenditures of Slovak University of Agriculture in Nitra”. Acta Oeconomica Universitatis Selye, vol. 6, pp. 119 – 137, 2017.
. R. Myšková, M. Hitka, S. Lorincová and Ž. Balážová. “Regional motivation diferences of service sector employess in urban and rural areas in Slovakia”. Scientific Papers of the University of Pardubice. Series D, vol. 23, pp. 118-130, 2016.
. L. Pasquazzi and M. Zenga. “Components of Gini, Bonferroni, and Zenga Inequality Indexes for EU Income Data”. Journal of Official Statistics, vol. 34, pp. 149-180, 2018.
. V. German-Soto and G. Brock. “Are mexican manufacturing workers underpaid? Some quarterly time series evidence”. Journal of Developing Areas, vol. 54, pp. 75-93, 2020.
. M.H. Bilgin. “Bireysel Performansa Dayalı Ücret ve Verimlilik”. Çimento İşveren Dergisi, vol. 16,
pp. 3-12, 2002.
. J. Guščinskienė and J. Čiburienė. “Darbo rinka Lietuvoje: moterų ir vyrų padėtis”. Business, Management and Education, vol. 8, pp. 271-283, 2010.
. E. Rajčáková and A. Švecová. “Regionálne disparity na Slovensku”. Geographia Cassoviensis III, vol. 2, pp. 142-149, 2009.
. R. Ezcura, P. Pascual and M. Rapún. “Spatial inequality in productivity in the European Union: Sectoral and regional factors”. International Regional Science Review, vol. 30, pp. 384-407, 2007.
. J. Huther. “Relating Labor Productivity to Wages in Service Sectors: A Long-Run Approach”. Economic Inquiry, vol. 38, pp. 110-122, 2010.
. Leimane, I., Krieviņa, A., and L. Melece. “Productivity performance in agriculture: Comparison of the baltic countries”, in Research for Rural Development - International Scientific Conference, 2017, pp. 89-96.
. M. Feldstein. “Did wages reflect growth in productivity?”. Journal of Policy Modeling, vol. 30, pp. 591-594, 2008.
. D. Salvatore. “Growth, productivity and compensation in the United States and in the other G-7 countries”. Journal of Policy Modeling, vol. 30, pp. 627-631, 2008.
. Y. Zenou. “Rural-urban migration and unemployment: Theory and policy implications”. Journal of Regional Science, vol. 51, pp. 65-82, 2011.
. Z. Xu, Y. Chen and M. Li. “Are Chinese Workers Paid the Correct Wages? Measuring Wage Underpayment in the Chinese Industrial Sector, 2005-2010”. Review of Radical Political Economics, vol. 47, pp. 446-459, 2015.
. G. Adamczyk-Łojewska. “Work productivity as an economic growth and prosperity factor in Poland from 2004–2010”. Studia i Materialy Polskiego Stowarzyszenia Zarzadzania Wiedza / Studies, vol. 67, pp. 38-53, 2013.
. M. Amara and K. Thabet. “Firm and regional factors of productivity: a multilevel analysis of Tunisian manufacturing”. Annals of Regional Science, vol. 63, pp. 25-51, 2019.
. L. Policardo, L.F. Punzo and E.J.S. Carrera. “On the wage–productivity causal relationship”. Empirical Economics, vol. 57, pp. 329–343, 2019.
. W.A. Lewis. (1954). Economic Development with Unlimited Supplies of Labour. Manchester: The Manchester School, 1954.
. J.C. Márquez Ortiz and S.J. Bautista. “Macroeconomic Determinants of Real Wages in an Internationally Integrated Economy, Mexico 1998.1-2011.4”. Modern Economy, vol. 10, pp. 1539–1557, 2019.
. J. Klíma J. and M. Palát M. “Assessing the development of labour productivity in the EU countries”. Agricultural Economics – Czech, vol. 51, pp. 489 – 494, 2005.
. J. E. King. “Some obstacles to wage-led growth”. Review of Keynesian Economics, vol. 7, pp. 308-320, 2019.
. B. Woźniak-Jęchorek. “Institutional Determinants of Regional Diversity of Labor Market in Poland”. Equilibrium. Quarterly Journal of Economics and Economic Policy, vol. 10, pp. 129-151., 2015.
. A. Oğuz. “Analysis of the factors affecting labour supply”. Dumlupinar University Journal of Social Science, vol. 56, pp. 157-170, 2018.
. S. Al Azzawi and V. Hlasny. “Household asset wealth and female labor supply in MENA”. Quartely Review of Economics and Finance, vol. 73, pp. 3-13, 2019.
. Á, Kiss and K. Van Herck, K. (2019). Short-Term and Long-Term Determinants of Moderate Wage Growth in the EU. IZA Policy Paper No. 144. Internet: ttp://ftp.iza.org/pp144.pdf, 2019 [Jan. 04, 2021].
. System of National Accounts 2008. European Commission, International Monetary Fund, Organisation for Economic Co-operation and Development, United Nations and World Bank, New York, Dec. 2009, pp. 662
. A. W. Phillips. “The relation between unemployment and the rate of change of money wage rates in the United Kingdom, 1861-1957”. Economica, vol. 25, pp. 283-299, 1958.
. E. S. Phelps. “Money-wage dynamics and labor-market equilibrium”. Journal of Political Economy, vol. 76, pp. 678-711, 1968.
. W. Nicholson and K. Needels, K. “Unemployment Insurance: Strengthening the Relationship between Theory and Policy”. Journal of Economic Perspectives, vol. 20, pp. 47-70, 2006.
. I. Magda, F. Rycx, I. Tojerow and D. Valsamis. “Wage Differentials Across Sectors in Europe: An East-West Comparison”. IZA Discussion Paper No. 3830, Internet: https://ssrn.com/abstract=1305814, 2018 [Jan. 04, 2021].
. T.H. Gindling and K. Terrell, K. “Minimum wages, wages and employment in various sectors in Honduras”. Labour Economics, vol. 16, pp. 291-303, 2009.
. O. Gibescu. “Does the gross fixed capital formation represent a factor for supporting the economic growth”? MPRA Paper. No. 50135. Internet: https://mpra.ub.uni-muenchen.de/50135/
[Jan. 06, 2021].
. K. Geeta, J. Gaurav and K.M. Pandey. “Analysis of Factors Affecting Job Satisfaction of the Employees in Public and Private Sector”. International Journal of Trends in Economics Management and Technology, vol. 3, pp. 11-19, 2014.
. E. Moretti and J.M. Perloff (2000). Minimum wage laws lower some agricultural wages (No. 1557-2016-132917). Internet: https://escholarship.org/uc/item/51k1v5hf, 2000 [Dec. 22, 2020].
. E.S. Katovich and A.G. Maia. “The relation between labor productivity and wages in Brazil: a sectoral analysis”. Nova Economia, vol. 28, pp. 7-38, 2018.
. A.C. Pigou. “Wage policy and unemployment”. The Economic Journal, vol. 37, pp. 355-368, 1927.
. R. G. Lipsey. “The relation between unemployment and the rate of change of money wage rates in the United Kingdom, 1862-1957: a further analysis”. Economica, vol. 27, pp. 1-31, 1960.
. G. Connolly. “The Effects of Excess Labour Supply and Excess Labour Demand on Australian Wages.”, in Australian Conference of Economists, 2016.
. L. Mura, B. Gontkovičová, E. Duľová Spišáková and Z. Hajduová, Z. “Position of Employee Benefits in Remuneration Structure”. Transformations in Business & Economics, vol. 18, pp. 156-173, 2019.
. European Commission. “Labour Market and Wage Developments in Europe. Annual Review 2019”. Internet: https://ec.europa.eu/social/main.jsp?catId=738&langId=en&pubId=8139&furtherPubs=yes, 2019 [Jan. 02, 2021].
Copyright (c) 2021 International Journal of Sciences: Basic and Applied Research (IJSBAR)
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Authors who submit papers with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
- By submitting the processing fee, it is understood that the author has agreed to our terms and conditions which may change from time to time without any notice.
- It should be clear for authors that the Editor In Chief is responsible for the final decision about the submitted papers; have the right to accept\reject any paper. The Editor In Chief will choose any option from the following to review the submitted papers:A. send the paper to two reviewers, if the results were negative by one reviewer and positive by the other one; then the editor may send the paper for third reviewer or he take immediately the final decision by accepting\rejecting the paper. The Editor In Chief will ask the selected reviewers to present the results within 7 working days, if they were unable to complete the review within the agreed period then the editor have the right to resend the papers for new reviewers using the same procedure. If the Editor In Chief was not able to find suitable reviewers for certain papers then he have the right to accept\reject the paper.B. sends the paper to a selected editorial board member(s). C. the Editor In Chief himself evaluates the paper.
- Author will take the responsibility what so ever if any copyright infringement or any other violation of any law is done by publishing the research work by the author
- Before publishing, author must check whether this journal is accepted by his employer, or any authority he intends to submit his research work. we will not be responsible in this matter.
- If at any time, due to any legal reason, if the journal stops accepting manuscripts or could not publish already accepted manuscripts, we will have the right to cancel all or any one of the manuscripts without any compensation or returning back any kind of processing cost.
- The cost covered in the publication fees is only for online publication of a single manuscript.