Wages in agriculture: status and trends, causes
Journal Title: Аграрна економіка - Year 2014, Vol 7, Issue 1
Abstract
The system of industrial relations in agriculture has many disadvantages. One of the most pressing is wages. The main problems of employment and wage reform still unresolved. This is reflected in the lack of motivation for agricultural labor and a low level of wages. The average wage in agriculture is the lowest among the sectors of the economy - 67% of the national average. One of the causes of the phenomenon is the low productivity due to the high proportion of manual labor, poor level of mechanization of production processes, the use of morally obsolete equipment and technology. Another reason for the low wages of employees is critical to the spread of informal employment in agriculture. In the context of the research we are talking about getting out of the official payroll accounting. The proliferation of informal sector in agriculture is also a cause of low and officially registered rate of labor productivity. This study leads to the following conclusions: 1) wages in agriculture is the smallest among all sectors of the economy of Ukraine; 2) the causes of the phenomenon are: а) low productivity due to the high proportion of manual labor, low level of mechanization of production processes, the use of morally obsolete equipment and technologies; b) the operation of informal sector employment and wages in the informal agricultural en-terprises; 3) to address the need to involve a number of mechanisms, including: a) to encourage state innovation policy in the development and introduction of modern agri-cultural technology designs and technologies; b) timely and full implementation of the State Programmer on agricultural commodity equipment on lease; c) establishment of specialized agricultural credit institutions in conjunction with stabilization of price movements in the money market; d) increasing the minimum wage; e) the production of agricultural legalization
Authors and Affiliations
A. Andryushchenko
Keywords
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