Analytical View on the Level and Changes in Labor Incomes in the Context of Sectoral Breakdown
Keywords:wage, labor productivity, gross value added, employment, gross fixed capital, sectoral differences, Slovak Republic
The 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.
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