COMPANIES‘ STRUCTURAL CHANGES AND WAGES

Abstract

The article analyzes how structural changes taking place in companies affect wages and determine their changes. It is relevant to examine how the structural changes of companies are related to wage indicators, because this reveals one of the most important economic consequences of the structural changes of companies, which is also significant at the level of the national economy. The aim of the research is to theoretically base the essence of structural changes, to empirically evaluate how the structural changes of companies and wages are related. A statistical study was conducted, investigating the links between wages and structural changes in Lithuanian companies. The method of correlation-regression analysis was applied. The results of the study show that one of the most prominent structural effects affecting wages is the development of enterprise activity (judging by indicators of turnover and investment in fixed assets) – this structural change is positively correlated with wage growth. Another structural change in companies, which is associated with the increase in wages, is the growth of foreign capital in domestic companies. The results of the study have practical significance in understanding the factors that determine wage growth in the country’s companies and forecasting wage growth.