DETERMINANTS OF CHANGES IN THE REMUNERATION OF THE LABOUR FACTOR

Abstract

The publication addresses the issue and the mechanism of remuneration of the labour factor in agriculture. An analytical approach with empirical examples was used, the reasoning is carried out in the microeconomic convention. Basing on analytical formulas the relationships between (a) proportion of food in consumer's expenditure, (b) supply and demand for factors of production and the prices thereof, (c) prices of agri-food goods and remuneration of factors of production, in particular labour factor, were examined in the paper. That constitutes the mechanism of remuneration of labour factor and its level (level of farm incomes).