REMUNERATIONS AND LABOUR PRODUCTIVITY IN AGRICULTURE AGAINST A BACKGROUND OF OTHER ECONOMY SECTORS

Abstract

The optimal allocation of resources in various sectors results in the sustainable development of the whole economy (the theory of optimum allocation of resources by Kantonowicz and Koopmans). According to Tinbergen’s studies, the excessive labour force in one of them gives rise to all types of social and economic problems. The objective of theoretical considerations and empirical studies of this publication is to analyse the ratio of the remuneration for labour to its productivity in various economy sectors with particular attention paid to the agricultural sector. The authors also refer to the theory by Lewis and Schultz, who had analysed the problems of agriculture in developing countries, as well as to the Solow economic growth model with the Cobb–Douglas production function. In the light of the empirical data presented in the paper, we can conclude that in section A of Statistical Classification of Economic Activities this ratio is seriously disturbed and distorted. The remuneration is overvalued in relation to the labour productivity. Such a ratio is not a positive testimony to the reasonableness of management in the sense of agricultural producers’ equilibria.