| Abstract [eng] |
Relevance. The interrelationship between wages and labour productivity is one of the fundamental foundations of the economic system, especially in the Lithuanian industrial sector, which accounts for a significant part of GDP. In today’s economy, wage and labour productivity indicators are closely linked, influenced by rising social expectations, inflationary pressure, and competition. Uneven and disproportionate growth in wage and labour productivity indicators can lead to economic imbalances, reduce the sector’s competitiveness and, in the long run, affect the national economy. The final thesis aims to clarify how wages and labour productivity interact in the subsectors of Lithuanian industry (mining and quarrying (B), manufacturing (C), electricity, gas, steam supply and air conditioning (D), water supply, wastewater treatment, waste management and regeneration (E)). Research object. The interrelationship between wages and labour productivity. Research aim. To assess the interrelationship between wages and labour productivity in the Lithuanian industrial sector. Project results. Lithuania’s labour productivity in 2023 was about 1,6 times (32,22 thousand euros) lower than the EU, and wages were 1,9 times (13,66 thousand euros) lower than the EU. To ensure the country’s economic growth and competitiveness, it is important to analyse the interrelationship between wages and labour productivity in the Lithuanian industrial sector. A review of the academic literature revealed a lack of consensus among researchers regarding the direction of the causal interrelationship between these indicators, which one serves as the cause and which is the effect. Additional factors that may impact the changes in these indicators were also identified, including the number of employees, hours worked, wages, industrial output, foreign investments, and labour productivity. An econometric assessment was conducted for the period 2008-2024. The results showed that: in the mining and quarrying (B) subsector there is a reciprocal interrelationship between labour productivity and wages, econometric research showed that wages are increasing faster than labour productivity; in the manufacturing (C) subsector, a causal interrelationship between these indicators was not established; in the electricity, gas, steam supply, and air conditioning (D) subsector, the labour productivity indicator affects wages, but an econometric model could not be created; in the wate supply, wastewater treatment, waste management, and regeneration (E) subsector, wages affect labour productivity, econometric research found that if wages increases by 1 euro, labour productivity would increase by approximately 0,65 euros. The interrelationship between wages and labour productivity in Lithuanian industry is not unambiguous – sometimes wages stimulate labour productivity, sometimes there is no relationship or it is the opposite. That indicates complex relationship influenced by additional factors. |
