Purchasing power and value of the average wage in the Baltic States

Rimvydas Jasinavičius, Vidmantas Ganiprauskas

Research output: Contribution to journalArticle

Abstract

Before the financial crisis, the Baltic States had the highest growth rate of the Gross domestic product (hereinafter – GDP) in the European Union. Also, these States were called “the Baltic tigers”. During the crisis, the decline of GDP was the highest in the Baltic States. After the crisis, economic indicators of Estonia economy had the highest growth rates in the European Union. Such progress and life quality in Estonia surprises the other two neighboring Baltic States – Latvia and Lithuania. However, GDP of Lithuania exceeds the GDP indicator of Estonia almost twice in absolute value (Eurostat). Since October 1, 2014, the minimum monthly wage in Lithuania increased by 3.5 percent. Based on information provided by the European Union Statistics (hereinafter – Eurostat), from 2004, the average wage in the Baltic States on average increased by 8.2, 10.3, and 7.7 percent per annum. It should be emphasized that the growth rate of the average wage in monetary expression significantly fell behind the actual decline rate of the wage purchasing power. During the period of 2004-2013, the purchasing power and value of the average wage in the Baltic States has decreased in respectively assessing by the standard coefficient of inflation and the “Gold Standard”.
Original languageEnglish
Pages (from-to)34-51
JournalIntelektinė ekonomika
Volume8
Issue number2
DOIs
Publication statusPublished - 2014

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Wages
Purchasing power
Baltic States
Estonia
Lithuania
European Union
Gross domestic product
Economic indicators
Statistics
Inflation
Coefficients
Gold standard
Financial crisis
Minimum wage
Latvia
Surprise

Keywords

  • The value of income and depreciation
  • The value of income calculation
  • The value of the average monthly wages
  • The effect of inflation

Cite this

Purchasing power and value of the average wage in the Baltic States. / Jasinavičius, Rimvydas; Ganiprauskas, Vidmantas.

In: Intelektinė ekonomika, Vol. 8, No. 2, 2014, p. 34-51.

Research output: Contribution to journalArticle

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