The influence of wage and employment on competitiveness: An assessment
Laima Okunevičiūtė Neverauskienė, Romualdas Ginevičius, Irena Danilevičienė
Keywords:
competitiveness, efficiency, employment, wage, work
Abstract:
Competitiveness is defined as the ability to provide services and products to the market at the right time, in the right place and in the correct form. In this way, the need to disclose the value of work payment is formed, because the standard of living and a person’s position in society depend on the income received. At the national level, the wages received reveal the country’s ability to pay the expected amount for the work performed and evaluate the benefits created by employees for the entire economy. The need to determine an adequate salary directly related to the achieved work results and to predict the required number of employees to accomplish the intended work results with the least resources becomes apparent. The topic of this paper is the competitiveness of E.U. countries and their relationship with wages and employment. The objective is to evaluate how changes in wages and employment affect the country’s competitiveness. To achieve this, the following tasks are undertaken: analyzing the theoretical aspects of compensation, employment, and competitiveness, and identifying the key factors that influence competitiveness. Additionally, a methodology for assessing the country’s competitiveness is developed to evaluate the impact of wages, employment, and other factors on its overall competitiveness. The work uses the following methods of scientific literature analysis: systematization, juxtaposition, summarization of scientific concepts and empirical research results, hypothesis formulation, correlation-regression analysis, overall productivity factor, and Granger causality test. An analysis of political, economic, social, and technological changes revealed that wages and employment levels are central to modeling competitiveness growthGranger causality tests confirmed a cointegrated relationship, emphasizing that wage growth is critical for boosting employee motivation, preventing company bankruptcies, and increasing employment levels. This, in turn, fosters competitiveness at both company and national levels.
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 10.7441/joc.2024.04.05
Okunevičiūtė Neverauskienė, L., Ginevičius, R., & Danilevičienė, I. (2024). The influence of wage and employment on competitiveness: An assessment. Journal of Competitiveness, 16(4), 83-105. https://doi.org/10.7441/joc.2024.04.05
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