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Eresko Artur · Lithuanian wages go northward

Eresko Artur · Lithuanian wages go northward

The Lithuanians intended to destroy the established in the Baltic States status quo with wages, the father into the south the lower wages. And vice versa.

 

So, in the second quarter of 2016 gross wage in Estonia made up 1163 euro, in Latvia - 838 euro, but in Lithuania - 722 euro.

Pensioners keep pace with work-people too. So, in the second quarter of 2016 an average retirement pension in Estonia made up 391 euro, in Latvia - 295 euro, in Lithuania - 255 euro.

But this year a new trend emerged – trying to catch up with northern salary the wages in the south of the region started growing most rapidly.

In particular, the fastest raise in average salary, if compared to the second quarter of 2015, was recorded in Lithuania, where salaries have shown 8.1% growth. In Estonia salaries also showed quite a decent growth by 7.6%, but in Latvia – just by 3.3%.

Whereas an average pension in Lithuania and Estonia has grown in Lithuania and Estonia by 5.4%, but in Latvia – by 2.6%.

Besides that the Latvian salaries slowed down their speeding-up. They are figuratively pulled apart between the low-income and well-to-do residents. In May this year salary up to 70 euro was earned by 21 thousand residents. Meanwhile 17.5 thousand work-people earned 2000 to 2500 euro.

A stratified society with 30 – time difference in income does no credit to any state. Also in the Government of Latvia they try to fight this trend. Though, they approach solving the problem from a wrong side. A so-called solidarity tax has been already introduced in the country, which applies to salaries in excess of 4 thousand euro. The politicians keep discussing introduction of progressive taxation – to take away from the rich and give to the poor. Meanwhile, for the good of the common cause it would be better to bring up low salaries to the high ones rather than trying to cut a decent wage to the level of a skirting board.

For fairness’ sake we can mention that work in this area is under way. In particular, it is planned to decrease by 2020 the number of low-skilled workers in Latvia from 31% to 20%. Inter alia, by better education of population.

The advantage of qualification (education) for the gain in wage is also evidenced by the recent data on the level of remuneration in various sectors of economics. The highest – paid jobs are created in banks, financial and insurance companies. Here in the second quarter people on the average earned per 1 869 euro. But in the lowest-paid sphere— hotels and restaurants they paid just 557 euro.

On top of it, the degree of education of the financers and waiters is different. If to put the price of education in euro, then the result is a threefold difference. That gives rise to repeat three times ‘Education, education and education!’

 

Artur Eresko (Артур Ересько), candidate of Economic and Legal Sciences.

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    If for European policy the year 2017 promises to be complicated (elections, Brexit, unpredictable relationship with new government of the USA, trade wars with Russia), while in the economic aspect the new year promises to be quite not bad. At least, for the eurozone countries.

     

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