INCOME INEQUALITY AS A RESULT OF THE DIFFERENT SECTORAL STRUCTURE AT THE LOCAL LEVEL
Monika Daňová
University of Prešov in Prešov, Faculty of Management, Department of Economics and Economy, Konštantínova 16, 080 01 Prešov, Slovakia
Ivana Kravčáková Vozárová
University of Prešov in Prešov, Faculty of Management, Department of Economics and Economy, Konštantínova 16, 080 01 Prešov, Slovakia
Roman Vavrek
Technical University of Liberec, Faculty of Economics, Department of Informatics, Voroněžská 13, 460 01 Liberec 1, Czech Republic
DOI: https://doi.org/10.31410/Balkans.JETSS.2020.3.1.48-55
Monika Daňová
University of Prešov in Prešov, Faculty of Management, Department of Economics and Economy, Konštantínova 16, 080 01 Prešov, Slovakia
Ivana Kravčáková Vozárová
University of Prešov in Prešov, Faculty of Management, Department of Economics and Economy, Konštantínova 16, 080 01 Prešov, Slovakia
Roman Vavrek
Technical University of Liberec, Faculty of Economics, Department of Informatics, Voroněžská 13, 460 01 Liberec 1, Czech Republic
DOI: https://doi.org/10.31410/Balkans.JETSS.2020.3.1.48-55
Balkans Journal of Emerging Trends in Social Sciences, (2020) , Vol 3, No 1
ISSN: 2620-164X
ISSN: 2620-164X
Abstract: Long-term income differences between regions are undesirable from an economic and social point of view. Nevertheless, they are a long-term phenomenon in many countries. Although comparing the countries with each other, the situation appears to be similar. The assumption of reducing the differences in the size of household income is to identify objectively the determinants of wages. According to published opinions, the difference in labor income is due to the different value of the marginal product of labor and thus the resulting wage. Alternative views associate wage size with market factors - the labor market situation, the overall wealth of households, the location of the region, the increase or dampening of the economic activity of the system. The aim of this paper is to analyze and quantify the influence of different branch structure on the regional nominal wage. The model change estimates the possible change in the regional wage caused by the change in the representation of individual sectors in the regions of Slovakia. The factors considered for regional disparities are the representation of the manufacturing sector, sectoral labor productivity and labor market participation.
Keywords: Income, Inequality, Regional Disparities. Sectoral Structure, Slovak Republic.
JEL Classifications O15 • P44
REFERENCES
Adamczyk-Łojewska, G. (2013). Work Productivity as an Economic Growth and Prosperity Factor
in Poland from 2004–2010. Studia i Materialy Polskiego Stowarzyszenia Zarzadzania Wiedza,
(67), 38-53.
Amara, M. & Thabet, K. (2019). Firm and regional factors of productivity: a multilevel analysis of
Tunisian manufacturing. Annals of Regional Science, 63(1), 25-51.
Bruce C. (2002). The Connection between Labour Productivity and Wages. Economica LTD, The
Expert Witness, 7(2), 68-74.
Esteban, J. (2000). Regional convergence in Europe and the industry mix: a shift-share analysis. Regional
Science and Urban Economics, 30(3), 353-364.
Ezcurra, R., Pascual, P. & Rapún, M. (2007). Spatial Inequality in Productivity in the European
Union: Sectoral and Regional Factors. International Regional Science Review, 30(4), 384-407.
Feldstein, M. (2008). Did wages reflect growth in productivity? Journal of Policy Modeling, 30(4),
591-594.
Gali, J. (1999). Technology, employment and the business cycle: Do technology shocks explain aggregate
fluctuations? America economic review, 89(1), 249-271.
German-Soto, V. & Brock, G. (2020). Are Mexican manufacturing workers underpaid? Some quarterly
time series evidence. Journal of Developing Areas, 54(2), 75-93
Di Giacinto, V. & Nuzzo. G. (2005). Explaining Labour Productivity Differentials on Italian Regions,
Bank of Italy. Economic Research Unit, 1–31.
Hannan, M.T. & Kleinsorge, P.L. et al. (2018). Wage and salary. Encyclopedia Britannica. https://
www.britannica.com/topic/wage
Huizinga F. & Broer, P. (2004). Wage moderation and labour productivity. Netherlands Bureau for
Economic Policy Analysis, series CPB Discussion Papers, nr.28.
Chua, L.Y., Low, S.L., Tan, K.W., Tiang, Yi M. & Yeap, X.Y. (2017). The Determinants of Labor Productivity
in United Kingdom. Final Year Project, UTAR.
King, J.E. (2019). Some obstacles to wage-led growth. Review of Keynesian Economics, 7(3), 308-320.
Pasquazzi, L. & Zenga, M. (2018). Components of Gini, Bonferroni, and Zenga Inequality Indexes for
EU Income Data. Journal of Official Statistics, 34(1), 149-180.
Policardo, L., Punzo, L.F. & Carrera, E.J.S. (2019). On the wage–productivity causal relationship.
Empirical Economics, 57(1), 329–343.
Rajčáková, E. & Švecová, A. (2009). Regionálne disparity na Slovensku. Goographia Cassoviensis,
(3)2, 142 – 149.
Salvatore, D. (2008). Growth, productivity and compensation in the United States and in the other G-7
countries. Journal of Policy Modeling, 30(4), 627-631.
Suhányi, L., Suhányiová, A., Horváthová, J. & Mokrišová, M. (2016). Research in wages in selected
countries of the European Union and in regions of Slovakia. In International Multidisciplinary
Scientific Conference on Social Sciences and Arts SGEM 2016, Albena, (pp.521-528). Bulgaria:
Curran Associates, Inc.
Xu, Z., Chen, Y. & Li, M. (2015). Are Chinese Workers Paid the Correct Wages? Measuring Wage
Underpayment in the Chinese Industrial Sector, 2005-2010. Review of Radical Political Economics,
47(3), 446-459.
Zenou, Y. (2011). Rural-urban migration and unemployment: Theory and policy implications. Journal
of Regional Science, 51(1), 65-82.
Keywords: Income, Inequality, Regional Disparities. Sectoral Structure, Slovak Republic.
JEL Classifications O15 • P44
REFERENCES
Adamczyk-Łojewska, G. (2013). Work Productivity as an Economic Growth and Prosperity Factor
in Poland from 2004–2010. Studia i Materialy Polskiego Stowarzyszenia Zarzadzania Wiedza,
(67), 38-53.
Amara, M. & Thabet, K. (2019). Firm and regional factors of productivity: a multilevel analysis of
Tunisian manufacturing. Annals of Regional Science, 63(1), 25-51.
Bruce C. (2002). The Connection between Labour Productivity and Wages. Economica LTD, The
Expert Witness, 7(2), 68-74.
Esteban, J. (2000). Regional convergence in Europe and the industry mix: a shift-share analysis. Regional
Science and Urban Economics, 30(3), 353-364.
Ezcurra, R., Pascual, P. & Rapún, M. (2007). Spatial Inequality in Productivity in the European
Union: Sectoral and Regional Factors. International Regional Science Review, 30(4), 384-407.
Feldstein, M. (2008). Did wages reflect growth in productivity? Journal of Policy Modeling, 30(4),
591-594.
Gali, J. (1999). Technology, employment and the business cycle: Do technology shocks explain aggregate
fluctuations? America economic review, 89(1), 249-271.
German-Soto, V. & Brock, G. (2020). Are Mexican manufacturing workers underpaid? Some quarterly
time series evidence. Journal of Developing Areas, 54(2), 75-93
Di Giacinto, V. & Nuzzo. G. (2005). Explaining Labour Productivity Differentials on Italian Regions,
Bank of Italy. Economic Research Unit, 1–31.
Hannan, M.T. & Kleinsorge, P.L. et al. (2018). Wage and salary. Encyclopedia Britannica. https://
www.britannica.com/topic/wage
Huizinga F. & Broer, P. (2004). Wage moderation and labour productivity. Netherlands Bureau for
Economic Policy Analysis, series CPB Discussion Papers, nr.28.
Chua, L.Y., Low, S.L., Tan, K.W., Tiang, Yi M. & Yeap, X.Y. (2017). The Determinants of Labor Productivity
in United Kingdom. Final Year Project, UTAR.
King, J.E. (2019). Some obstacles to wage-led growth. Review of Keynesian Economics, 7(3), 308-320.
Pasquazzi, L. & Zenga, M. (2018). Components of Gini, Bonferroni, and Zenga Inequality Indexes for
EU Income Data. Journal of Official Statistics, 34(1), 149-180.
Policardo, L., Punzo, L.F. & Carrera, E.J.S. (2019). On the wage–productivity causal relationship.
Empirical Economics, 57(1), 329–343.
Rajčáková, E. & Švecová, A. (2009). Regionálne disparity na Slovensku. Goographia Cassoviensis,
(3)2, 142 – 149.
Salvatore, D. (2008). Growth, productivity and compensation in the United States and in the other G-7
countries. Journal of Policy Modeling, 30(4), 627-631.
Suhányi, L., Suhányiová, A., Horváthová, J. & Mokrišová, M. (2016). Research in wages in selected
countries of the European Union and in regions of Slovakia. In International Multidisciplinary
Scientific Conference on Social Sciences and Arts SGEM 2016, Albena, (pp.521-528). Bulgaria:
Curran Associates, Inc.
Xu, Z., Chen, Y. & Li, M. (2015). Are Chinese Workers Paid the Correct Wages? Measuring Wage
Underpayment in the Chinese Industrial Sector, 2005-2010. Review of Radical Political Economics,
47(3), 446-459.
Zenou, Y. (2011). Rural-urban migration and unemployment: Theory and policy implications. Journal
of Regional Science, 51(1), 65-82.
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