Transformations  in
Business & Economics

SPATIAL AND SECTORAL CONDITIONALITY OF THE AVERAGE MONTHLY NOMINAL WAGE IN THE SLOVAK REPUBLIC
Iveta Pauhofova, Beata Stehlikova, Aleksandr Kljucnikov, Armenia Androniceanu

ABSTRACT. The fourth industrial revolution rouses enthusiasm for an increase of wages, especially for highly qualified specialized workers. There is a whole range of questions in regard to the employment and the level of wages of those who will perform routine work. The specialization of the Slovak economy is on a higher level compared to the European Union average. The aim of this paper is to analyze the spatial and sectoral aspect of the average nominal monthly wage in the SR in 2009 and 2016. The paper identified a spatial auto-correlation of average wages of all sectors. The average wages in the sectors of industry, commerce, and public administration are the most correlated with the overall average wage. On the other hand, the average wage in the education sector shows the weakest link to the average wages of other sectors. We provide a spatial error model of the dependence of average wage on the unemployment rate at the district level .

KEYWORDS:  Moran's coefficient, spatial error model, LAU, unemployment, average wage, sectoral conditionality.

JEL classification:  J31, J64, E24.