Labor market dynamics and wage inequality
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Abstract
Abstract
This article uses cluster analysis to examine changes in average monthly gross wages (AMGW) by economic activity in the Baltic States and uses econometric analysis to investigate the impact of macroeconomic factors on wages in Lithuania. Previous studies have provided limited comparative data on wage differentiation by economic activity in the Baltic States, particularly at the macro level. Thus, this study aims to evaluate wage disparities by economic activities and determine the primary macroeconomic determinants of wages in Lithuania. The study employs hierarchical and comparative cluster analysis, as well as OLS regression. The results show that changes in AMGW by economic activity are significantly influenced by national economic conditions, policy decisions, and institutional factors. In Baltics, the highest wages are in the finance and insurance sector, as well as in information and communication activities. While the Baltic countries share some common wage patterns, cluster analysis reveals significant differences between countries. Econometric results indicate that wages in Lithuania are significantly impacted by unemployment, economic growth, and inflation. These results underscore the importance of sector-specific wage policies, improved alignment of labour supply and demand, and wage-setting mechanisms that consider inflation dynamics and productivity growth.
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@article{Bariauskait2026Wage,
title = {Wage Disparities in the Baltic Countries and Macroeconomic Determinants of Wages in Lithuania},
author = {Gintarė Barišauskaitė and Akvilė Aleksandravičienė},
journal = {Ekonomika},
year = {2026},
doi = {10.15388/ekon.2026.105.3.7},
url = {https://doi.org/10.15388/ekon.2026.105.3.7}
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