Relationship between labour productivity and its remuneration. The case of agriculture
Article Sidebar
Main Article Content
Abstract
The article aims at presenting the fundamental relationship between remuneration and productivity of labor factor. This relationship is explored analytically and empirically. It is investigated at the level of the agricultural sector, derived from the microeconomic level, i.e. an agricultural producer. Based on an optimal solution of the income maximisation problem, we derive the determinants of remuneration of the labour factor, i.e. income in agriculture. We explore analytically the improvement of labour productivity. We also take into consideration the issue of the importance of subsidies which can be refered to as the second potential source of agricultural producer's income. The empirical evidence is based on the FADN (Farm Accountancy Data Network) data for 2004-2012 for Member States that joined the European Union in 2004. We examine the statistical relationship between the indicators of developments in the productivity of the labour factor, income and the level of subsidies in selected countries.
Keywords: objective function of an agricultural producer, productivity of the labour factor, remuneration of the labour factor;
Downloads
Article Details
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
References
Dorward, A. (2013). Agricultural labour productivity, food prices and sustainable development impacts and indicators. Food Policy, 39, p. 40–50.
FADN Public Database, http://ec.europa.eu/agriculture/rica/database/database.cfm (accessed 14.06.2014).
Feldstein, M. (2008), Did wages reflect growth in productivity?. Journal of Policy Modeling, 30 (4), p. 591–594.
Gollin, D. (2010). Chapter 73 Agricultural Productivity and Economic Growth. Handbook of Agricultural Economics, 4, p. 3825–3866.
Gollin, D., Parente, S., & Rogerson, R. (2002). The Role of Agriculture in Development. American Economic Review, 92 (2), p. 160–164.
Gollin, D., Parente, S., Rogerson, R. (2007). The food problem and the evolution of international income levels. Journal of Monetary Economics, 54 (4), p. 1230–1255.
Goschin, Z. (2014). Regional Determinants of Average Wage in Romania. Procedia Economics and Finance, 8, p. 362-369.
Gutierrez, L. (2002). Why is Agricultural Labour Productivity higher in some countries than others?. Agricultural Economics Review, 03 (1), p. 58-72.
Mahmood, T. (2012). Labour Productivity Convergence in 52 Industries: A Panel Data Analysis of Some European Countries. International Journal of Economics and Financial Issues, 2 (3), p. 320-339,
http://www.econjournals.com/index.php/ijefi/article/view/232/pdf (accessed 15.06.2014).
Narayan, P., K., & Smyth, R. (2009). The effect of inflation and real wages on productivity: new evidence from a panel of G7 countries. Applied Economics, 41, p. 1285–1291.
Nayak, S., R., & Patra, S. (2013). Wage-Labour Productivity Relationship in Manufacturing Sector of Odisha: An Observed Analysis. International Journal of Engineering Science Invention, Volume 2, Issue 3, p. 08-11.
Restuccia, D., Yang, D., & Zhu, X. (2008). Agriculture and aggregate productivity: A quantitative cross-country analysis. Journal of Monetary Economics, 55 (2), p. 234–250.
Ruttan, V., W. (2002). Productivity Growth in World Agriculture: Sources and Constraints. Journal of Economic Perspectives, 16(4), p. 161-184.
Tamasauskiene, Z., & Stankaityte, A. (2013). Evaluating of the Relationship between Wages and Labour Productivity in Lithuania: Territorial and Sectoral Approaches. Social Research, 1 (30), p. 24-35, http://vddb.library.lt/fedora/get/LT-eLABa-0001:J.04~2013~ISSN_1392-3110.N_1_30.PG_24-35/DS.002.1.01.ARTIC (accessed 15.06.2014).
Varian, H., R. (2005). Intermediate Economics. A Modern Approach. New York, London: W.W. Norton & Company.
Verbic, M., & Kuzmin, F. (2009). Coefficient of structural concordance and an example of its application: labour productivity and wages in Slovenia. Panoeconomicus, 56(2), p. 227–240.
Willis, J., L., & Wroblewski, J. (2007). What happened to the gains from strong productivity growth?. Economic Review, 92, p. 5–23.