GRANT
journal
ISSN 1805-062X, 1805-0638 (online), ETTN 072-11-00002-09-4
EUROPEAN GRANT PROJECTS | RESULTS | RESEARCH & DEVELOPMENT | SCIENCE
drop in the purchasing power per monetary unit. Price indices are
used to measure inflation. From a macroeconomic point of view,
inflation represents growth in the overall price level, thus, not a rise
in the prices of individual products. It is a reflection of an imbalance
in the value and material aspects of gross national earnings.
Inflationary pressures can be reduced by increasing unemployment
or by regulating wages and prices. Inflation is most often defined as
a price phenomenon, such as an increase in price levels. We label
with the rate of inflation the change in the price level over a defined
period, expressed as a percentage (Ištvániková, Lukáčik,
Szomolányi, 2002). According to experts, the primary factors that
will affect inflation growth in Slovakia in the near future are a
significant growth in wages in the economy as well as rising prices
for services. The current prognosis of the Slovak Ministry of
Finance (MFSR) assumes a stable price increase of 2.6% in 2019. In
January 2019, consumer prices have increased by 2.2% year-on-
year. The largest influence on price growth at present is the strong
wage growth in the economy. The overheating of the labour market
forces wages and the prices for services to go up, which will
continue to be the main driver of inflation in 2019. According to the
prognosis, inflation is projected to move just below 2% in 2020
(Žúdel, Habrman, Pécsyová, 2019).
5.6
Influence of age on wages
One of the main factors that significantly influences the amount of
wages is age. With rising age, employees acquire a great deal of new
experience, knowledge, expertise and skills that they can use to their
benefit and for the industry in which they work. These traits create
the foundations for increasing labour productivity, and thus they
increase wages. At the same time, it is necessary to keep in mind
that with the increasing age of employees, their family
responsibilities, health problems, various physical and psychological
problems are also growing (Dashöfer, 2012). The following Table 7
shows us the average wages by age in Slovakia in € for the
monitored period from 2007 to 2017.
Table 7 Development of average monthly wage by age, in years,
2007 – 2017 (€)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
0-19
407
435
424
445
488
520
494
535
582
591
649
20-24
537
572
576
589
602
636
641
668
687
732
791
25-29
704
757
781
795
806
833
834
869
886
931
989
30-34
775
843
876
911
939
967
985
1036 1057 1096 1148
35-39
764
815
876
910
934
971
1003 1072 1108 1158 1225
40-44
742
801
835
871
897
938
964
1037 1077 1134 1201
45-49
719
789
810
831
854
882
911
970
1008 1077 1134
50-54
704
759
779
804
829
856
893
932
974
1022 1077
55-59
714
752
768
793
817
842
861
910
944
977
1038
60
702
740
773
809
846
895
917
961
1002 1030 1061
Source: own processing based on the Statistical Office of the Slovak
Republic
As we can see in Table 7, the lowest wage in 2007 was earned by
young people under the age of 19 and aged 20-24. In the other age
categories, the average monthly wage was between 700 € and 800 €.
Over the monitored period, we can see that the development of
average wages in the age categories of 30 and up was very similar.
In 2017, nearly all the age categories were earning over the 1,000 €
mark, and we can say that the highest wages were earned by
employees aged 35-39 and 40-44.
So, in general, the lowest wages go to the age category of employees
up to 24 years old. In this period of life a person has very little work
experience and tends to have lower qualifications, too. Furthermore,
this may be caused by the fact that this group includes mainly
secondary school graduates as well as students earning while
studying for a degree. They, too, often have insufficient experience
and work experience. This may be one of the reasons for the lower
wages for young people. In the examined period, the highest paid
employees were in the 35-39 years of age category. The assumption
for workers at this age is that they are already well into their
working lives and have developed work habits and experience.
Many people at this time of life reach the peak of their careers, the
time when their salary is at its highest. An employer is more willing
to invest into employees demonstrating greater enthusiasm and
productivity when working, and thus it wants to keep such
employees. Investments will be returned to the employer in the form
of a loyal and productive labour force. However, with time the
labour force gradually begins being replaced by a younger labour
force. The development of scientific-technological innovations as
well as new technologies disadvantages older people to a certain
extent and helps younger future employees, who are more flexible in
this regard.
5.7
Influence of sex on wages
The UN Commission for Economic, Social and Cultural Rights
points out the inequalities between men and women in Slovakia,
especially their representation on various levels in the public sector,
in authorities with crucial powers and in political parties, where they
perform this same type of work. Slovakia could avoid these matters
by amending already valid legislation, including the Labour Code
and Anti-discrimination Act, by performing a larger number of
inspections and by applying sanctions. Wage conditions must be the
same for men and women, with no sex-based discrimination.
Women and men have the right to the same wage for the same work
performed in the same working conditions and with achievement of
the same work results (Barancová, Schronk, 2013). One of the main
factors which have a significant influence on slower wage growth
for women versus wages for men is education. Gender differences in
wages are influenced by the level of achieved education but also its
focus. High-paying jobs and economic activities are especially filled
by men. In contrast, professions characteristic for women are for the
most part low-income jobs. Differences in wages are also influenced
by prejudices of employers in regard to the suitability of men in
managerial functions. Another reason why women have lower
wages than men is the greater care they tend to provide for children
and relatives. One reason may be the fact that a woman in a certain
period of life will interrupt her career path with maternity leave,
which leads to stagnation in her income (Filadelfiová, 2007). The
difference of wages between the sexes is obvious, because the
wages of women during the whole monitored period did not come
close to those of men, which were notably higher. Men of each age
earned more than the average wage in the Slovak economy, and by
contrast, the average monthly wage for women in the monitored
period exceeded the overall average wage in Slovakia only in 2017.
The average hourly wage for women in Slovakia in 2018 was 19%
lower than that of men. Slovakia thus ranked in sixth place in the
EU in this regard, and the European average of the difference in
payment for women and men is 16.2%. The overall difference in
remuneration represents the difference between the average annual
income of women and men. Three types of disadvantages that
women face are included in it, namely a lower hourly wage, fewer
hours of paid worked and a lower measure of employment (for
example, due to interrupting a career to care for children or
relatives). The total difference in remuneration in Slovakia
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