Dynamics of earnings in Lithuanian agricultural sector during the economic downturn
The Lithuanian agricultural sector was that one experienced the least significant economic difficulties during 2008–2010. Hence, it is important to investigate the dynamics of trends of earnings indicators in this particular sector. Currently, the index analysis method is widely employed as a tool for identification of certain economic phenomena. This method, therefore, will be applied in the study when evaluating absolute and relative impact caused by factors influencing changes in monthly earnings, namely hourly remuneration and hours worked. The outcomes of the research suggest that monthly earnings in agricultural sector decreased at similar rates as those in other economic sectors. However, the amount of hours worked increased at higher rates if compared to other sectors. Indeed, the most important factor contributing to the decrease of monthly earnings was reduced
hourly remunerations. The Lithuanian agricultural sector, therefore, is peculiar with relatively higher rates of increase in the amount of hours worked as well as those of decrease in monthly earnings if compared to respective indices of the Lithuanian economy as a whole. Moreover, the index analysis proved that reduced average hourly earnings impacted the reduction of monthly earnings at
a margin of four times if compared to impact of increased amount of working hours.
JEL codes: C430, J300, J430, R100.
Article in: English
Published on-line: 2011-06-21
Keyword(s): earnings, agricultural sector, strategic, management, index method.
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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355
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