Comparative Analysis of Wages and Labour Productivity in Lithuania

ISSN 1392-3110 Socialiniai tyrimai / Social Research. 2010. Nr. 3 (20), 132–143

Comparative Analysis of Wages and Labour Productivity in Lithuania and Ot- her EU-15 Countries Algis Sileika, Zita Tamasauskiene, Neringa Barteliene Siauliai University Architektu str. 1, LT-78366 Siauliai, Lithuania E-mail: [email protected], [email protected], [email protected]

Abstract an appropriate comparative analysis of these proces- Lithuania’s decision to integrate itself into econo- ses in Lithuania with other EU countries. mic and political European structures in the context of in- Economists constantly observe the relations- tegration and globalization causes the need to match wa- hip between wages and labour productivity, analyse ges and labour productivity to the level of other EU coun- it in many articles using different approaches and re- tries. When analyzing the relationship between wages and search methods. Researchers create models in order labour productivity in Lithuania and EU-15 countries, a dif- to determine relationship between wages and labour ferent change in these two indicators is noticed. Till 2009 Lithuanian economy was rapidly growing, the borders of productivity (Kumar et al, 2009; Wakeford, 2004; Na- EU countries opened and these changes had influence on rayan, Smyth, 2009; Hall, 1986; Alexander, 1993). the increase in wages and labour productivity. However, Labour productivity most clearly shows the ef- an obvious difference is noticed between the wages and ficiency of the use of labour force. With the growth labour productivity in Lithuania and other EU countries. of labour productivity, the quantity of production ma- The performed analysis has shown that wages (calculating de during the same period of time increases and so- in euros) in Lithuania in comparison to old EU countries ciety becomes richer. With the increase in labour pro- are lower 3 to 7 times, but labour productivity calculated ductivity, business subjects can increase wages wit- as GDP per capita – only 2 times. In rapidly developing hout increasing the prices, they can increase divi- countries wages and labour productivity adjust to econo- dends and expand production. Like labour producti- mic changes; therefore, there is a necessity in the context vity, wages have always been an essential economic of other EU countries to investigate the relationship betwe- and legal problem. The level of wages is determined en wages and labour productivity in Lithuania so that these differences could be gradually reduced. by market and institutional factors. Employees’ pro- Keywords: wage, labour productivity, share of wa- fessional qualification, competence, level of region’s ges in total GDP, wage elasticity. development, and social and economic country’s opportunities, general standard of living, etc. may be Introduction considered the market factors. Minimum wages poli- Wages is the main income source for working cy, collective agreements may be considered the ins- people that directly influences their standard of living, titutional factors. Comparative analysis of wages and the main component of overall consumption, and the labour productivity as well as their relationship in Lit- key factor of countries’ economic activities. Labour huania and other EU countries has been chosen for productivity and wages have undoubted relation with further investigation, since this problem has not been competitiveness at macro and micro levels. During investigated more deeply in economic literature. the World Economic Forum in the Global Competi- The aim of the article is to analyse and compa- tiveness Report 2009-2010 (Xavier Sala-i-Martin, et re the relationship of wages and labour productivity al. 2010) competitiveness was defined as a set of ins- in Lithuania and other EU countries, to determine the titutions, policies and factors that determine the level tendencies of their change. of productivity in a country. The level of productivi- The subject is wages and labour productivity. ty, in turn, sets the sustainable level of prosperity that The objectives: can be earned by an economy. In other words, more – To reveal functions, conception of wages. competitive economies tend to be able to produce hig- To describe factors increasing labour pro- her levels of income for their citizens. Modern compe- ductivity. titive environment determines that employees are at – To compare and evaluate the relationships the maximum interested in increase in labour produc- between wages and labour productivity in tivity which may be achieved only by appropriate ma- Lithuania and other EU countries. terial motivation and hence scientifically based deter- Till 2009 Lithuanian economy was rapidly mination of wage level. Consequently, this requires growing, the borders of EU countries opened. The- 132 se changes influenced the increase in wages and la- tion as well as to develop his creative potential. This bour productivity. Lithuania’s decision to integrate in- can already be considered as a motivating function of to economic and political European structures in the the wages which determines differentiated pay rate context of integration causes an inevitable need to ad- depending upon general education, special education just wages as well as labour productivity. Subject to of all forms, skills obtained in practical work and in- present situation there is a noticeable difference bet- herent personal features. While wages perform these ween wages and labour productivity in Lithuania and two functions at the same time the function of social other EU countries. The article raises a question – are guarantees is realized that ensures the restoration of the wages matched with labour productivity in Lithua- cost not only of ordinary but also of complex, quali- nia comparing it with other EU member states? fied work. Also it is worth to mention the compensa- tory function of wages – when an employee works un- Theoretical questions and empirical research on der worse than ordinary conditions (night work, work wages and labour productivity under complicated conditions, etc.). Finally, it would Wages is an economic and legal category. Re- be logical to distinguish accumulative function of wa- garding legal relations, various concepts are being ges. In Lithuania like in many other post-soviet coun- used – “wages”, “pay for work”, “salary”, therefore tries retirement pension averagely comprises up to it is purposeful to discuss the conception of this cate- 40% of the rate of former wages. Whereas statistics gory. Legal regulation of wages involves not only im- of economically developed countries indicates that perative (state) regulation determining certain wages pensions there reach 70-75% of former wages what guarantees for the employees, but also dispositive (lo- ensures socially normal living conditions after retire- cal or individual) regulation determining supplemen- ment. It is logical because the process of reproduc- tary guarantees other than determined by laws and ot- tion of labour force is not terminated by person’s reti- her normative legal acts or when particular pay con- rement – it starts when a future employee is not even ditions and amounts for each employee are determi- born yet (a pregnant woman already uses certain pri- ned in his work contract. In Lithuania, like in other vileges guaranteed by society) and finishes only with European Union countries, work execution and pay the death of a former employee. Therefore, socially conditions are determined by the laws. The formation normal living conditions are to be ensured during the of wages system in many European countries is ba- retirement period. The researches show that when an sed on collective bargaining between employers and employee is retired his personal needs decrease and representatives of employees. Besides, in many coun- when receiving 25-30% less comparing to the inco- tries the system of collective bargaining is based on mes of the former wages in the form of pension he do- legal acts (Broughton, 2009). es not “fall” into the so-called economic hole. There- According to Lithuanian economists (Martin- fore, an employee of post-socialist countries must sa- kus, Savaneviciene, Sakalas, 2006) “wages” in the ve a part of wages for the period of retirement in or- narrow sense is understood as a salary paid to emplo- der to ensure such living conditions. yees for the use of their labour force or an amount of The discussed functions define economic con- money calculated for the wage-earners during the ac- tent of wages, its qualitative and quantitative mar- counting period. Labour Code of the Republic of Lit- gins. Thus, wages are an economic category – they huania defines wages as a pay for work did by the em- are not any amount of money paid to an employee ployee according to the labour contract. Thus, we can referring to his work load and quality, they ensure draw a conclusion that legally wages are an amount the realization of all his functions at a socially neces- of money that a person receives as a pay for certain sary level i.e. they ensure normal reproduction of la- activities performed by him. bour force pursuant to employee’s level of qualifica- However, wages is more an economic catego- tion. Naturally, any (even very low) level of earned ry than a legal one, therefore it is important to dis- income may be defined as a wage. However, in such cuss wages with regard to this aspect. From the eco- case it (wage) assumes irrational expression, i.e. ex- nomic point of view wages must perform certain func- pressed only with regard to the form. Wages like any tions. First of all, restoring function. This title origi- other economic category have objective qualitative nated from the term of restoration of used labour for- and quantitative parameters. Ignorance of the latter ce. First, the costs of living of ordinary, unqualified in economic practice destructively influences dialec- worker must be compensated. As Smith (2004) sta- tal unity of content and form of wages. At empirical ted, a person must survive on his work and wages level it finally asserts as a weakening of work stimu- must be enough at least to live. However, under mo- li at particular economy sectors (at work places), the dern conditions, labour force is restored when satis- increase in the number of people who use social be- fying not only physical needs but also spiritual (intel- nefits, the growth of emigration of employable peop- lectual), social ones and creating satisfactory condi- le and shadow economy as well as similar ineffective tions for an employee to obtain and improve qualifica- phenomena. 133 Many problems appear when determining this me earned per year (the income approach), or by sum- level practically. For the determination of objective ming up all expenses experienced per year (the expen- work complexity as well as a particular level of qua- diture approach), or by summing up all economic go- lification of an employee necessary for performance ods produced per year (the product approach). Chan- of work Sileika et al. (2004) suggests to apply a wi- ge in GDP has a significant impact on country’s eco- dely used analytical-point work (occupation) evalua- nomic life. Remarkable increase or decrease in GDP tion method the basis of which consists of generali- first of all influences stock market. It is not difficult zed criteria/factors of evaluation of work places (oc- to understand why: economic decline usually means cupations) (they were published in 1950 in the confe- lower profit for the enterprises (also lower prices of rence of International Labour Organisation in Geneva stocks) as well as decline in wages. and called “Geneva Scheme”). This scheme was mo- Talking about the evolution of Lithuanian eco- dified by the authors of the publication referring to nomy it is often emphasized that one of the problems the experience of developed countries when creating that Lithuania encounters is a low level of labour pro- the scales of basic wages and to the practice of evalu- ductivity in comparison with other EU countries. Lo- ation of occupations of the service of Lithuanian sta- wer than the average of EU countries labour produc- te, also to the opinion of representatives of country’s tivity level means a greater demand for unqualified social partners (employers and employees) about the or low qualification labour force and at the same ti- weights of evaluation criteria of jobs (occupations). me bigger quantitative dependence upon labour for- Real wages are especially influenced by in- ce as a production factor. Increasing labour producti- flation processes that worsen the standard of living. vity creates a bigger “economic pie”. Everyone who With the increase in prices of consumer economic go- helped “to bake” it receives bigger slice of it. Econo- ods, trade unions of developed countries aspire to inc- mic theory states that great labour demand increases lude in labour contracts the point regarding the increa- labour price (wages) and vice versa – decreased de- se in wages due to the changes in the index of prices. mand reduces it. The demand for labour like for ot- In some countries this is formalized in normative do- her resources increases with the growth in marginal cuments in other countries this requirement is not for- product of labour. If labour supply remains fixed the malized. Here the purchasing power of wages is main- average rate of real wages grows slowly. GDP level tained by regulating (changing) tariff rates and offi- and dynamics reflect the changes in labour producti- cial salaries or making new collective agreements. vity that depend upon many of factors. First of all, it In order to develop its economy and satisfy is worth to mention the volume and quality of used constantly increasing people’s needs society must con- physical capital, level of technologies, efficiency and tinuously increase production of material goods and flexibility of work organization and management, bu- extent of provided services. This may be achieved in siness, social, and political environment. The quality two ways: by employing more people in production of labour force, its education, professional training, or by using their work more efficiently. These two wa- wellness, work traditions have especially great impor- ys are not anyhow similar in their meanings. The inc- tance. rease in the number of employees depends not only Increasing labour productivity is the key not upon the increase in the number of country’s total po- only to economic growth but also to higher wages. pulation but first of all upon the growth of number of Employees working more productively are more va- population of working age. The history of society’s luable to business enterprises and consumers whom evolution shows that economic needs grow more ra- they serve – the latter receive more new and better pidly than the number of population of working age. goods for a lower price. Business owners also win – Therefore, the main way to increase social goods is they receive greater reward for the invested capital. the expansion of labour productivity. Even in 1918 a The relationship between the real wages and labour famous economist prof. Albinas Rimka in newspaper productivity is based on the fact that greater capital “Varpas” wrote: “The only right and real way to im- stock increases labour demand as well as real wages. prove people’s existence is the raise of their labour The increase in wages stimulates to substitute capital productivity”. for labour, which increases labour productivity. In order to compare labour productivity in EU Foreign scientists have determined a direct re- countries the indexes of Gross Domestic Product lationship between the real wages and labour produc- (GDP) per capita or per working person are used, tivity (Wakeford, 2004). Two main arguments are pre- which are calculated by purchasing power standards sented. First, higher real wages increase alternative (PPS)1. GDP is calculated by summing up all inco- costs of the loss of a job that may stimulate greater work efforts in order to avoid redundancy (an efficien- 1 PPS is a unit of artificial currency eliminating the differences in price level among countries. The same amount of goods and countries. The indexes expressed by PPS are calculated by divi- services in different countries may be bought for one PPS. This ding indexes of current prices and national currency by particular measurement unit allows comparing various indexes among the purchasing power parity (PPP). 134 cy-wage type hypothesis). Second, an increase in re- persion reductions in productivity or real wages. al wages results in an increase in average costs of la- Other empirical researches focused on separa- bour and forces companies to substitute capital for la- te countries. For instance, Strauss and Wohar (2004) bour, which will be reflected in an increase in margi- investigated long-run relationships between inflation, nal productivity of labour. Gordon (1987) emphasi- real wages and labour productivity in 459 branches of zes that substitution from labour to capital in respon- manufacturing industry in the USA in 1956-1996 and se to inexorable increases in real wages determined determined two-way Granger causality between real economic growth. wages and labour productivity. Verbic and Kuzmin Relationship among inflation, real wages, and (2009) investigated relationship between the wages labour productivity is widely analysed in the works and labour productivity in Slovenia in 1998-2007. by foreign scientists (Hondroyiannis and Papapetrou, 1997, Bildirici and Alp, 2008). Kumar et al. (2009) Relationship of wages and labour productivity in presents the interdependence of real wages, inflation Lithuania and old EU-15 countries and labour productivity in Australia using the tests of In order to identify the relationship of growth cointegration, Granger causality and structural chan- of wages and labour productivity in Lithuania and ges. The performed researches indicate that in case of EU countries first of all we will discuss the alterna- increase in real wages of the employees of manufactu- tion of the mentioned indicators, later we will analyse ring industry by 1%, the productivity of the industry the relationship of changes in real wages and labour increases from 0.5 to 0.8%. productivity and finally we will evaluate the share of Hall (1986) and Alexander (1993) determi- GDP that goes to wages and its change in Lithuania ned that higher wages stimulate labour productivity and EU-15 countries. providing the arguments for effective wages. Naray- With the development of economies in Lithua- an and Smyth (2009) used cointegration technique nia and EU-15 countries, wages and labour producti- when investigating relationship between inflation, vity have also changed accordingly. Eurostat databa- real wages, and productivity growth in G7 countries se presents only general expenditures on wages and during the period of 1960-2001. They found a positi- salaries in millions of euros, average expenditures ve and statistically meaningful relationship between per month on hiring one employee (all employer’s real wages and labour productivity growth. Mora et expenditures when hiring employees), part of gene- al. (2005) investigated the convergence in wages and ral expenditures used for wages. Referring to the da- productivity for 11 European countries in 1981-2001 ta provided in Eurostat database, the authors have cal- and found reductions in the dispersion of nominal wa- culated average monthly gross wages in different EU ges and unit labour costs, but did not find similar dis- countries. Table 1 Average monthly wages in EU countries (EUR)

Country \ Year 2001 2002 2003 2004 2005 2006 2007 2008 Ireland n* n* n* n* n* n* n* n* Austria 2511.1 2546.5 2645.2 2683.5 2736.9 2785.2 2858.7 2861.5 Belgium 2482.6 2579.3 2765.2 2654.4 2713.0 2784.2 2865.5 2971.5 Denmark 2742.9 3429.1 3552.2 3642.2 3779.1 3846.6 3985.1 n* United Kingdom 3105.7 3171.1 2925.2 3078.5 3223.7 3386.0 3460.0 n Greece 1347.7 1444.4 1564.0 n* n* n* n* n* Spain 1376.1 1429.9 1484.9 1528.7 1566.0 1617.3 1671.1 Italy 1949.4 2003.8 n* n* n* n* n* n* Lithuania 310.7 336.9 349.4 363.4 397.4 462.0 561.6 Luxembourg n* n* n* 3646.1 3767.5 3880.4 4029.0 4159.1 Netherlands 2683.3 2810.0 2945.8 3015.6 3056.0 n* n* n* Portugal 995.6 1046.9 1100.8 1157.4 1206.6 1253.9 1298.8 1346.4 France 2285.9 2323.7 2363.2 2472.0 2543.9 2593.4 2677.2 2767.7 Finland 2375.1 2494.5 2611.9 2668.9 2816.4 2873.8 2951.6 3122.7 Sweden 2584.0 2708.3 2868.4 2889.2 2932.8 2989.7 3095.2 n* Germany 2675.4 2736.3 2811.2 2863.6 2897.1 2939.0 2985.2 n*

Source: calculated by the authors of the work referring to the data of comparative weight of expenditures on one employee and the part of wages in general labour expenditure presented by EUROSTAT. n* – cannot calculate data due to the lack of it.

135 According to the data presented in Table 1, the Despite a rapid growth of average monthly wa- average monthly gross wages during the period of ges calculated in euros in 2007 in Lithuania wages 2001-2007 in Lithuania increased by 251 euros, in were lower than in Luxemburg (7.2 times), Denmark Denmark by 1242.3 euros, and in Finland by 576.6 (7.1 time), United Kingdom (6.2 times). In Lithuania euros. We may consider that the growth of wages in wages were the least different from Portugal (2.3 ti- Lithuania during the analysed period could be deter- mes), Spain (3 times), Belgium and Austria (approx. mined by the factors of labour demand and supply. In 5 times) comparing with old EU countries. 2004-2008 with the growth of Lithuanian economy If we compare labour productivity calculated the country’s enterprises rapidly expanded produc- GDP per person expressed in PPS, the performed cal- tion and labour demand was increasing. However, culations show that in 2008 in Lithuania it was lower labour supply was reduced by emigration and short- than in Luxemburg (4.2 times), Denmark (2 times), comings of education system in a broad sense. Due United Kingdom (1.9 times), Portugal (1.3 times), to ineffective preparation of specialists deficit of la- Spain (1.7 times), Belgium (1.9 times), Austria (2 ti- bour force was felt not because of quantitative rea- mes) (Lithuanian statistics chronicle, 2009). Table 2 sons (shortage of people) but more because of quali- presents indexes (ES-27=100) of real volume of la- tative ones (deficit of people possessing necessary qu- bour productivity calculated as GDP per capita, ex- alification and skills). However, we must not forget pressed in PPS. that growth of wages was one of the main reasons sti- mulating not to emigrate or even increasing remigra- tion possibilities. Table 2 Labour productivity in Lithuania and EU-15 countries in 2001-2008

Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 Indexes of real volu- Lithuania 41 44 49 50 53 55 59 62 53 me of labour produc- EU-15 115 114 114 113 113 112 112 111 111 tivity (EU-27=100) countries

Source: Eurostat databases.

Looking at the data presented in Table 2 we tries. We know that GDP per capita is not a perfect la- can see that labour productivity in Lithuania (when bour productivity indicator, therefore, comparison of expressed in PPS) in 2008 lagged only two times labour productivity in different countries according from the average of EU-15 countries. The purchasing to GDP per capita sometimes may be not quite accu- power of euro in Lithuania and EU countries definite- rate. However, change in GDP per capita much more ly differs but we can explain such a lag in wages neit- precisely reflects changes in labour productivity over her by labour productivity nor by purchasing power time. The change in real wages indicates whether the differences. purchasing power of wages varies with regard to ti- In order to evaluate changes in wages and la- me. Although nominal wages in Lithuania during the bour productivity more precisely it is necessary to cal- investigated period kept growing rather rapidly, but culate the changes in real wages and real GDP per real upturn of life quality was not so obvious because worker. The calculations rely on the assumption that negative impact on the growth of real wages2 was ma- real GDP per capita is a valid indicator of labour pro- de by accelerating inflation processes. The changes in ductivity. Practically it is an ordinary and convenient real wages and real labour productivity in Lithuania assumption (see Rodrik, 1999 or Flagman, 2006), be- in 2001-2009 calculated by GDP per capita, determi- cause GDP per worker is calculated not in all coun- ned by the authors, are presented in Figure 1.

2 In order to estimate growth in real wages ﬁrst of all we calculate real wages by dividing nominal wages by the consumer price index and then apply the formula: C S D T 4 , D T E U

where: GRt– the growth in real wages in year t; RWt – the level of

real wages in year t; RWt-1– the level of real wages in year t-1. 136 !

Fig. 1. Growth rate of real wages and real GDP per capita in Lithuania in 2001-2009

Source: composed by the authors with reference to the data presented by the Department of Statistics Lithuania.

Till 2008 the growth of Lithuanian GDP was In the global wage report ((2008/09); hereinaf- mainly inﬂuenced by the increase in domestic deter – Report) the change in average real wages and re- mand – household consumption and enterprises’ in- al GDP per capita in 2001-2007 in different countries vestments were growing. At the same time it became is presented. Referring to the data presented in the Re- obvious that till 2005 the change in GDP per capita port, the scheme (see Figure 2) has been composed was bigger than the change in real wages, but from which presents the relationship between the change 2005 the changes in real wages were bigger than the in average annual real GDP per capita and real ave- changes in GDP per capita. rage annual wages in 2001-2007 in the old EU-15 countries.

$ "#!

Fig. 2. Relationship between growth of real GDP per capita and real wages, 2001-2007

Source: composed by the authors with reference to the Global Wages Report 2008/2009.

The slope of regression line3 presented in this (or in short, “wages elasticity”). It shows percentage figure may be called the “wages elasticity to GDP” change in real wages when real GDP per capita increases by 1%. If GDP per capita and real wages increa- 3 Regression line is shown by an equation: real wages growth sed at the same pace, the slope would be equal to 1, = a + b⋅GDP per capita growth (where GDP per capita is used as a proxy for productivity change). but the performed analysis shows that wages elastici- 137 ty in the old EU-15 countries is about 0.48. This spe- Many national, regional and international or- cifies that during the period of 2001-2007 the real wa- ganizations investigate the changes in wage share in ges averagely increased slower than labour producti- GDP and their reasons (ILO, 2007; IMF, 2007a,b; vity calculated by the real change in GDP per capita. OECD, 2007). Although different evaluation procedu- With 1% increase in real average GDP per capita, re- res and analytic schemes are used in the researches, al wages increased, on average, by 0.48%. they indicate that the decrease in wage share till 2009 Calculations carried out by the authors with re- was a dominant tendency. ference to the data presented in the Report indicate Alternation of wage share in Lithuania and old that “wage elasticity” in Lithuania during that period EU-15 countries during 2001-2008 is presented in Fi- was equal to 0.82. These results show that during the gure 3. During the analysed period this share decrea- recent years the growth of real wages lagged from the sed on average by 1.4 percentage points in EU coun- growth of labour productivity in Lithuania and the tries. Considering all old EU countries, wage share old EU countries. decreased the most in Luxemburg (by 5.1 percenta- If average real wages increase more rapidly ge points), Germany (by 4.1 percentage points), and than GDP per capita, the wage share increases and Sweden (by 3 percentage points) (as we can see be- smaller share of the economic gains is directed to pro- low, in 2009 in many countries wage share in GDP fits. The wage share is an indicator of the so-called increased). “functional” distribution of income between wages Although in Lithuania wage share increased and profits. It is usually calculated as a share of em- by 6% during the period of 2001-2008, but this share ployees’ compensation to total GDP. This share is of- in 2009 comprised only 45.5% of total produced pro- ten considered a part of GDP that is distributed to em- duct and was 4.9% lower than the average in EU-15. ployees and not allocated to accumulation of profit. Comparing wage share in GDP of Lithuania and ot- When the growth of real wages lags behind the gene- her countries in 2009 it is obvious that (see Fig. 4) ral growth of economy and labour productivity, the comparing to all old EU countries only in Greece, Ita- employees usually receive a decreasing share of ge- ly and Ireland this share was lower than in Lithuania. neral economic pie (i.e. GDP)4. In economy the part The greatest share of produced product in 2009 went of created value added which workers receive is dis- to the employees in Denmark (59.1%), Great Britain cussed in scientists’ debates (see Krueger, 1999 and (55%), Sweden (54.9%), Belgium (52.9%) and in EU Luebrek, 2007), the distribution of national incomes (27) countries the share that went to work comprised among wages, profits and rent is analysed (Atkinson, 49.7%, among them in Estonia – 52.2%, Slovenia – 2009; Bentolila and Saint Paul, 2003; Gollin, 2002; 54.5%, Latvia – 89.9%. Serres et al, 2001; Feldstein, 2008). In all countries governments carry out wage po- Naturally, wage share is important as an indi- licy correcting market shortcomings and striving for cator of “fair share” with the employees. The decrea- socially desirable, morally acceptable results corres- sing wage share usually means that a greater part of ponding to the country’s perception of social justice. economic benefit goes to profit. This might be not on- We would consider that Lithuanian government must ly considered unfair, but also may have a negative im- implement active wage policy: it must stimulate agre- pact upon economic growth in future. Since margi- ements among social partners and ensure that the part nal propensity to consume is higher for labour inco- of income going to wages would increase, that the to- me than for capital income, it is usually considered tal income is impartially distributed among the emplo- that an increase in wage share has a positive impact yees and employers. upon economy. In the mentioned Report it is emphasized that Researches carried out in Europe show that till 2008 in the world the general tendency was that when wage share increases by 1%, GDP increases by the real wages were increasing slower than GDP per 0.17% (Stockhamer, 2008). On the other hand, decre- person. In many countries the decrease in the share of asing wage share does not mean decrease in purcha- national income that goes to wages was recorded indi- sing power. Subject to rapid economic growth, decre- cating the lag between the growth of labour producti- asing wage share may simply reflect the fact that wa- vity and increase in wages. In many countries the ine- ges grow slower than profit. In this case purchasing quality of wages increased – the salaries of employe- power increases but not as much as expected. es receiving the highest wages increased faster than the salaries of employees receiving the lowest wages. 4 This happens when the proportion of employed people and It has been determined that in the countries where col- population number is stable in the course of years as it usually lective agreements involve more employees the decli- is. When employment rate increases rapidly, wage share may re- ne in wages is lower. main steady even when the growth of average wages lags behind the growth of GDP per person. 138 Fig. 3. Change in wage share in GDP in 2001-2008 (percentage points)

Source: composed by the authors with reference to Eurostat data.

,0&( -' ,+&0 ,, ,)&* ,)&, ,)&0 ,'&+ ,'&. ,'&/ ,(&( ,(&. +.&) +/&- ,' +,&, +)&0 +*&/

+' *-&)

$ ! ! ! " ! ! #(, % % !

Fig. 4. Wage share in GDP in Lithuania and EU-15 countries in 2009

Source: composed by the authors with reference to Eurostat data.

Foreign scientists and international organiza- Till 2009 economies of Lithuania and other tions distinguish three main reasons for decrease in countries were rapidly growing, but in 2009 they ex- wage share in GDP in the world in 2009. First, it is ar- perienced recession first of all because of construc- gued that the wage share decreased due to weakening tion of residential buildings and financial crisis in the of trade unions. Second, it is considered that techni- USA, but there were other reasons as well. Recession cal progress determined the decrease in wage share highlighted two problems related to wages (see Stig- in comparison with profit. This explanation is suppor- litz, 2009; International Labour Organisation, 2008). ted by IMF (see IMF, 2007a,b). Third, analysis perfor- On one hand, there was global imbalance in distribu- med by other scientists shows that quite a big role in tion of pre-crisis profit and wages. Increase in pro- this process was served by globalization. fit before crisis contributed to high liquidity of finan-

139 cial markets and low interest rates, whereas stagna- yee’s qualification level. Otherwise wage would as- ting wages in comparison with the increase in labour sume irrational expression, i.e. adequate to it econo- productivity together with growing inequality of wa- mic relations would be expressed only with regard to ges limited opportunities of majority of households the form. Thus, wages like any other economic cate- to increase consumption in any other way than borro- gory have objective qualitative and quantitative para- wing. These conditions provided an incentive for une- meters. Ignorance of the latter in economic practice qual consumption when borrowing too much. On the destructively influences dialectal unity of wages con- other hand, the problem related to salaries is a wide- tent and form and conditions many negative circums- ly discussed shortcoming of unrestricted markets de- tances not only in distribution stage but also in other termining the salaries of managing (responsible) he- stages of social reproduction. ads (Global Wages Report. Update, 2009). Multifunc- There is a direct relationship between wages tional wages systems and too high bonuses distorted and labour productivity. It is based on the fact that the structure of incentives in financial sector and con- firstly, higher real wages increase alternative costs of tributed to crisis. the loss of a job that may stimulate greater work ef- Analysis of statistical data presented in the Re- forts in order to avoid redundancy (an efficiency-wa- port indicates that positive wage policy has an impor- ge type hypothesis). Secondly, with increase in real tant positive impact upon the results of wages: col- wages average labour costs also increase which for- lective agreements reduce general wage inequality ces companies to change labour to capital that incre- and ensure a stronger relationship between econo- ases labour marginal efficiency as well as labour pro- mic growth and increase in the average wages. Re- ductivity. Labour change to physical capital when researches carried out by foreign scientists during the acting to inexorable increase in wages determined recent years show that collective agreements do not economic growth during recent decades. have a great negative impact upon general employ- Although the average monthly pay during the ment or economy (Tzannatos, 2008; Cahuc, Zylber- period of 2001-2007 in Lithuania increased by 251 berg, 2004; Manning, 2003), and reduce inequality euros, in Lithuania pay still remains one of the lo- of wages (Machin, 2008). It has been determined that west among the EU countries (calculated in euros). a positive relationship between collective agreements In 2007 it was lower than in Luxemburg (7.2 times), and wage elasticity exists. In the countries where col- Denmark (7.1 time), United Kingdom (6.2 times). In lective agreements are not an important wage determi- Lithuania the wages were the least different from Por- ning tool, wage elasticity is equal to 0.65 (when GDP tugal (2.3 times), Spain (3 times), Belgium and Aust- per capita increases by 1%, average real wages incre- ria (5.1 times) comparing with old EU countries. It ase by 0.65%). In the countries where collective agre- is worth to mention that labour productivity calcula- ements are an important tool when determining wa- ted in GDP per person expressed by PPS in 2008 in ges, its elasticity coefficient is equal to 0.87 (Global Lithuania during the analyzed period was only two ti- report 2008/2008). mes lower than the average of EU-15 countries. The Naturally, the state cannot interfere in labour purchasing power of euro in Lithuania and EU coun- market by directly determining wages but it also can- tries definitely differs but such a lag in wages can be not remain a passive observer and wait till the mar- explained neither by labour productivity nor by pur- ket itself will solve these problems. There is no doubt chasing power differences. that Lithuanian government must pursue active wage Wage elasticity calculated by the authors with policy: the latter must stimulate agreements among so- regard to GDP in EU-15 countries in 2001-2007 was cial partners and ensure that general incomes would equal to 0.48% and in Lithuania to 0.82%. In Lithua- be impartially distributed among employees and em- nia when real GDP per person increased by 1%, ave- ployers. rage annual real wage increased by 0.82%. This indicates that wages growth lagged behind GDP growth Conclusions in EU countries and in Lithuania. This lag determi- In the article it is motivated that it is necessary ned that in 2001-2008 in EU countries the economy to strengthen state’s role when optimizing the whole pie’s share for work decreased by 1.4% (this contrac- wage policy including the distribution of general in- tion was the highest in Luxemburg (5.1%), Germany come between work and capital in order to bring wa- (4.1%), and Sweden (3%)). ges closer to their objective level in Lithuania. Wage Foreign scientists distinguish three main rea- is an economic category – it is not any amount of mo- sons for decrease in wage share in GDP in 2009: first, ney paid to an employee referring to his work load weakening of trade unions, second, technical pro- and quality, it ensures the realization of all his func- gress, third, globalization also played a part in this tions at a socially necessary level i.e. it ensures nor- story. Global imbalance in distribution of pre-crisis mal reproduction of labour force pursuant to emplo-

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Šileika A., Tamašauskienė Z., Bartelienė N.

Darbo užmokesčio ir darbo našumo lyginamoji analizė Lietuvoje ir kitose Europos Sąjungos (15) šalyse

Santrauka

Darbo užmokestis yra pagrindinis dirbančių žmo- kamas pinigų kiekis, o toks, kuris užtikrina visų jo funk- nių pajamų šaltinis, tiesiogiai veikiantis jų gyvenimo lygį, cijų realizavimą visuomeniškai būtinu lygiu, t. y. užtikri- pagrindinis visuminės paklausos komponentas ir šalių eko- na normalų darbo jėgos reprodukavimą atitinkamai su dar- nominės veiklos veiksnys. Darbo našumas ryškiausiai pa- buotojų kvaliﬁkaciniu laipsniu. Priešingu atveju darbo už- rodo darbo jėgos panaudojimo rezultatyvumą. Augant dar- mokestis įgautų iracionalią išraišką, t. y. jam adekvačius bo našumui, didėja per tą patį laiką pagamintos produkci- ekonominius santykius išreikštų tik pagal formą. Taigi dar- jos apimtis, visuomenė turtingėja. Kylant darbo našumui, bo užmokestis, kaip ir kitos ekonominės kategorijos, turi verslo subjektai, nedidindami kainų, gali didinti darbo už- objektyvius tiek kokybinius, tiek kiekybinius parametrus. mokestį, dividendus akcininkams bei plėsti gamybą. Dar- Pastarųjų ignoravimas ūkinėje praktikoje griaunančiai vei- bo našumas ir darbo užmokesčio lygis turi neabejotiną ryšį kia dialektinę darbo užmokesčio turinio ir formos vienybę su konkurencingumu tiek mikro-, tiek makrolygyje. Šian- ir lemia nemažai negatyvių pasekmių ne tik paskirstymo, dieninė konkurencinė aplinka lemia, kad dirbantysis bū- bet ir kitose visuomeninės reprodukcijos stadijose. tų ypač suinteresuotas darbo našumo kėlimu, o tai galima Ekonomistai nuolat stebi priklausomybę tarp dar- pasiekti tik jo atitinkamu materialiniu skatinimu, vadina- bo užmokesčio ir darbo našumo, ją nagrinėja daugelyje si, moksliškai grįsto darbo užmokesčio lygio nustatymu. straipsnių, taikydami skirtingus požiūrius ir tyrimo aspek- Visa tai reikalauja ir atitinkamos šių procesų Lietuvoje ly- tus. Tyrėjai kuria modelius, siekdami nustatyti priklauso- ginamosios analizės su kitomis Europos Sąjungos (ES) ša- mybę tarp darbo užmokesčio ir darbo našumo. Mokslinėje limis. Lietuvos apsisprendimas integruotis į ekonomines ir literatūroje nustatytas tiesioginis ryšys tarp realaus darbo politines Europos struktūras taip pat suponuoja neišvengia- užmokesčio ir darbo našumo. Pagal efektyvaus darbo už- mą poreikį integracijos kontekste derinti darbo užmokestį, mokesčio teoriją didesnis realus darbo užmokestis didina kartu ir darbo našumą. Esant dabartinei situacijai pastebi- darbo netekimo alternatyviąsias sąnaudas, kurios gali ska- mas žymus skirtumas tarp darbo užmokesčio ir darbo našu- tinti didesnes darbo pastangas siekiant išvengti atleidimo mo Lietuvoje ir kitose ES šalyse. iš darbo. Tačiau, didėjant realiam darbo užmokesčiui didė- Straipsnio tikslas – išanalizuoti ir palyginti dar- ja vidutinės darbo sąnaudos, verčiančios ﬁrmas keisti darbo užmokesčio ir darbo našumo priklausomybę Lietuvoje bą kapitalu, o tai didina ribinį darbo produktyvumą. ir kitose ES (15) šalyse, nustatyti jų kitimo tendencijas. Darbo užmokestis yra pagrindinis dirbančių žmo- Straipsnyje motyvuojama, kad būtina stiprinti valstybės nių pragyvenimo šaltinis. Nors per pastaruosius metus vi- vaidmenį optimizuojant visą darbo užmokesčio politiką, dutinis mėnesinis darbo užmokestis Lietuvoje augo spar- taip pat ir bendrųjų pajamų paskirstymą tarp darbo ir kapi- čiau nei kitose ES (15) šalyse (2004–2008 metais Lietuvo- talo, turint tikslą darbo užmokestį Lietuvoje priartinti prie je jis padidėjo 77,5 proc., o ES (15) šalyse – 10,6 proc.), ta- jo objektyvaus lygio. čiau darbo užmokestis Lietuvoje vis dar išlieka vienas ma- Darbo užmokestis kaip ekonominė kategorija – tai žiausių ES. 2008 metais jis buvo 4,4 kartus mažesnis nei ne bet koks darbuotojui pagal jo darbo kiekį ir kokybę mo- senosiose ES (15) šalyse, nors darbo našumas, skaičiuoja-

142 mas pagal bendrąjį vidaus produktą (BVP), tenkantį vie- ekonominės naudos dalis tenka pelnui. Tai gali būti laiko- nam gyventojui, apskaičiuotu pagal perkamosios galios ma ne tik neteisinga, bet ir gali turėti neigiamą poveikį eko- standartus, buvo tik du kartus mažesnis. nomikos augimui ateityje. Analizuojamu laikotarpiu viduti- Norint tiksliau įvertinti darbo užmokesčio bei dar- niškai ES šalyse ši dalis sumažėjo 1,4 procentinio punkto. bo našumo kitimą būtina apskaičiuoti realaus darbo užmo- Darbo užmokesčio dalis BVP per 2001–2008 metus iš se- kesčio ir realaus BVP 1 gyventojui pokyčius. Realaus dar- nųjų ES šalių labiausiai sumažėjo Liuksemburge – 5,1, Vo- bo užmokesčio pokytis rodo, ar darbo užmokesčio perka- kietijoje – 4,1, Švedijoje – 3 procentiniais punktais (2009 moji galia kinta laiko požiūriu. Nors nominalus darbo už- metais daugelyje šalių darbo užmokesčio dalis BVP padi- mokestis nagrinėjamu laikotarpiu Lietuvoje augo gana dėjo). Nors Lietuvoje darbo užmokesčio dalis BVP 2001– sparčiai, tačiau realus gyvenimo kokybės gerėjimas buvo 2008 metais padidėjo, tačiau 2009 metais ji sudarė tik ne toks akivaizdus, nes realaus darbo užmokesčio augimui 45,5 proc. viso sukurto produkto ir buvo 4,9 procentiniais neigiamos įtakos turėjo spartėjantys inﬂiaciniai procesai. punktais mažesnė nei ES (15) vidurkis. Vertinant apskaičiuotus realaus darbo užmokesčio poky- Užsienio mokslininkai darbo užmokesčio dalies ma- čius Lietuvoje 2001–2009 metais išryškėjo, kad iki 2005 žėjimą BVP aiškina profesinių sąjungų silpnėjimu, techni- metų realaus BVP, tenkančio 1 gyventojui, pokytis buvo ne pažanga ir globalizacija. 2009 metais pasaulio recesijai didesnis nei realaus darbo užmokesčio pokytis. Tačiau nuo turėjo įtakos ir pelno bei darbo užmokesčio pasiskirstymo 2005 metų realaus darbo užmokesčio pokyčiai buvo dides- disbalansas. Pelno didėjimas prieš krizę prisidėjo prie aukš- ni nei BVP, tenkančio 1 gyventojui, pokyčiai. Žinoma, ski- to ﬁnansų rinkų likvidumo ir žemų palūkanų normų, kai riasi eurų perkamoji galia Lietuvoje ir ES šalyse, tačiau to- stagnuojantis realus darbo užmokestis, lyginant su darbo kio darbo užmokesčio atsilikimo negalima paaiškinti nei našumo padidėjimu – ir kartu su augančia darbo užmokes- darbo našumo, nei perkamosios galios skirtumais. čio nelygybe – ribojo daugelio namų ūkių galimybes didin- Atlikta analizė rodo, kad senosiose ES (15) šalyse ti vartojimą kitaip nei skolinantis. Šios sąlygos sudarė pa- 2001–2007 metais realus darbo užmokestis didėjo lėčiau skatas netolygiam vartojimui perdaug skolinantis. nei darbo našumas, skaičiuojamas realiu BVP pokyčiu 1 Suprantama, kad valstybė negali kištis į darbo rin- gyventojui, darbo užmokesčio elastingumas vidutiniškai ką tiesiogiai nustatinėdama darbo užmokestį, tačiau ji ne- buvo lygus 0,48. Straipsnio autorių atlikti skaičiavimai ro- gali būti ir pasyvi stebėtoja ir laukti, kol pati rinka tas pro- do, kad per tą patį laikotarpį Lietuvoje darbo užmokesčio blemas išspręs. Pasaulyje darbo užmokesčio dydį lemia ne elastingumas buvo 0,82. Remiantis rezultatai galima teig- tik rinka, bet ir instituciniai svertai. Neabejotina, kad ir Lie- ti, kad pastaraisiais metais realaus darbo užmokesčio augi- tuvos vyriausybei būtina vykdyti aktyvią darbo užmokes- mas atsiliko nuo darbo našumo augimo Lietuvoje ir seno- čio politiką: pastaroji, šalia viso kitko, turi skatinti susita- siose ES šalyse. Realaus darbo užmokesčio augimui atsi- rimus tarp socialinių partnerių ir užtikrinti, kad bendro- liekant nuo bendro ekonomikos ir darbo našumo augimo, sios pajamos būtų nešališkai skirstomos tarp darbuotojų ir darbuotojams tenka mažėjanti bendro sukurto ekonomikos darbdavių. pyrago, t. y. BVP dalis. Darbo užmokesčio dalis yra svar- Pagrindiniai žodžiai: darbo užmokestis, darbo na- bi kaip „teisingos dalies“ darbuotojams rodiklis. Mažėjan- šumas, darbo užmokesčio dalis BVP, darbo užmokesčio ti darbo užmokesčio dalis dažniausiai reiškia, kad didesnė elastingumas.

The article has been reviewed. Received in September, 2010; accepted in October, 2010.

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