Management Theory and Studies for Rural Business and Infrastructure Development, Volume 37, Number 2

The determinants of wage: the case of Lithuanian agricultural sector

Violeta Šilingienė, Dalia Stukaitė, Gintautas Radvila


In the scientific literature the problematic of the salary and wage gets a lot of attention, however mostly of research is limited either by modeling of the theoretical determinants that determine the level of wages or by analyzing the effect of separate individual determinants on the level of company or a specific occupation. Meanwhile, on the sector, as well as on the agricultural sector, level there is not much of research or they are fragmented. The scientific problem of the article: what external determinants have a significant impact on the level of wages in the agricultural sector? That implies the study objective – how the determinants affect wages of agricultural sector. The methods of the research: a systematic analysis of the scientific literature, the study and analysis of legislation, the analysis of quantitative statistical data and correlation analysis. Main results: common determinants affecting wage level are being supplemented with determinants of kind of economic activities; wages in the agricultural sector depend on all the examined determinants, however effects are different. It has been disclosed that the agricultural sector’s wages in Lithuania are more than average affected by a minimum monthly wage, capital investment and direct foreign investment; less by basic monthly salary, the number of unemployed persons and gross value added.

JEL codes: J30, N50.

Keyword(s): wage, economic determinants, macroeconomic determinants, political – legal determinants, agricultural sector

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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.