Dynamics of wages in agriculture and its impact on employment of rural population

Economic Annals-XXI: Volume 134, Issue 9-10(2), Pages: 37-40

Citation information:
Makhsma, M. (2013). Dynamics of wages in agriculture and its impact on employment of rural population. Economic Annals-XXI, 9-10(2), 37-40. https://ea21journal.world/index.php/ea-v134-10/

Maria Makhsma
PhD (Economics),
Associate Professor,
Kyiv National Economic University named after Vadym Hetman
54/1 Peremogy Ave., Kyiv, 03680, Ukraine
мahsmam@ukr.net

Dynamics of wages in agriculture and its impact on employment of rural population

Abstract. Introduction. During the last ten years there has been a rapid reduction in the number of employees in the agricultural sector of Ukraine. One of the reasons for this phenomenon is a low level of wages at agricultural enterprises. Regarding it, the purpose of the article is to analyze the current economic situation in the agricultural sector, the impact of wages on the quantity of agricultural workers and to identify directions for rural employment increase.

Results. Analysis of salary in agriculture has shown its positive upward trend. However, its level is still low to stimulate increase in quantity of agricultural workers. In addition, there is a negative trend of proactive wage growth compared to growth of labour productivity rates in the sector. As a result of the research, certain measures to increase employment of rural population based on the improvement of economic incentives for agricultural workers are suggested. In particular, it is proposed to increase the share of labour costs in agricultural added value; to optimize inter-sector differentiation in remuneration, including wage increases in agriculture to the level of the average salary in the economy; to strengthen the state control over the timeliness and completeness of wage payment at agricultural enterprises.

Keywords: Agriculture; Employment; Rural Population; Salary; Material Stimulation

JEL Classification: J21; J31; J43

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Received 04.09.2013