Social and economic consequences of the recent minimum wage rise in Lithuania

The government of Lithuania actively increases the minimum wage in 2012–2014: in-one-and-a-half year period it increased by 22 percent – from 246 EUR (850 LTL) to 300 EUR (1035 LTL). It is promised to increase the minimum wage in 2015 as well. The amplification of the competitiveness of the economy...

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Main Author: Vita Karpuškienė
Format: Article
Language:English
Published: Vilnius University Press 2015-01-01
Series:Ekonomika
Subjects:
Online Access:https://www.journals.vu.lt/ekonomika/article/view/8234
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author Vita Karpuškienė
author_facet Vita Karpuškienė
author_sort Vita Karpuškienė
collection DOAJ
description The government of Lithuania actively increases the minimum wage in 2012–2014: in-one-and-a-half year period it increased by 22 percent – from 246 EUR (850 LTL) to 300 EUR (1035 LTL). It is promised to increase the minimum wage in 2015 as well. The amplification of the competitiveness of the economy is one of the main conditions of economic development. This is emphasized by economists, Lithuanian government, and European Commission. The core issues of the competitiveness of Lithuania are the energy sector and the labour market. Such statement is provided by the European Commission in the 2014 report on Industry competitiveness. Therefore, the aim of this article is to evaluate the economic and social consequences of the increased minimum wage and their impact on the competitiveness of the labour force. In the first part of the article, changes of the minimum wage and their economic and social consequences are analysed. In the rest part of the article, the impact of these consequences on the competitiveness is evaluated.
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spelling doaj.art-6034ce8a0862487f859aca091a0d62842022-12-21T23:34:37ZengVilnius University PressEkonomika1392-12582424-61662015-01-0194210.15388/Ekon.2015.2.8234Social and economic consequences of the recent minimum wage rise in LithuaniaVita KarpuškienėThe government of Lithuania actively increases the minimum wage in 2012–2014: in-one-and-a-half year period it increased by 22 percent – from 246 EUR (850 LTL) to 300 EUR (1035 LTL). It is promised to increase the minimum wage in 2015 as well. The amplification of the competitiveness of the economy is one of the main conditions of economic development. This is emphasized by economists, Lithuanian government, and European Commission. The core issues of the competitiveness of Lithuania are the energy sector and the labour market. Such statement is provided by the European Commission in the 2014 report on Industry competitiveness. Therefore, the aim of this article is to evaluate the economic and social consequences of the increased minimum wage and their impact on the competitiveness of the labour force. In the first part of the article, changes of the minimum wage and their economic and social consequences are analysed. In the rest part of the article, the impact of these consequences on the competitiveness is evaluated.https://www.journals.vu.lt/ekonomika/article/view/8234minimum monthly wage (MW)labour costslabour productivitystructural unemployment
spellingShingle Vita Karpuškienė
Social and economic consequences of the recent minimum wage rise in Lithuania
Ekonomika
minimum monthly wage (MW)
labour costs
labour productivity
structural unemployment
title Social and economic consequences of the recent minimum wage rise in Lithuania
title_full Social and economic consequences of the recent minimum wage rise in Lithuania
title_fullStr Social and economic consequences of the recent minimum wage rise in Lithuania
title_full_unstemmed Social and economic consequences of the recent minimum wage rise in Lithuania
title_short Social and economic consequences of the recent minimum wage rise in Lithuania
title_sort social and economic consequences of the recent minimum wage rise in lithuania
topic minimum monthly wage (MW)
labour costs
labour productivity
structural unemployment
url https://www.journals.vu.lt/ekonomika/article/view/8234
work_keys_str_mv AT vitakarpuskiene socialandeconomicconsequencesoftherecentminimumwageriseinlithuania