Search results for "Employee Compensation"

Dynamics of real labour productivity and real compensation in Latvia

2019

Relationship between labour productivity and wages is an important issue not only for economists, but also for policy makers. In the last decades, we have witnessed that in the EU15 wage growth has been lagging productivity growth. At the same time in Latvia, also in some other central and eastern European member states, wages increased more than productivity, rising concerns about disbalance in the economy. However, comparison of wage level and productivity level in Latvia and respective levels in the EU15 shows that wage level in Latvia is much below the EU15 average value in absolute terms, but also in relation to productivity level. To understand whether dissimilarities in wage and prod…