Why Every Euro Matters to Low-Wage Earners but Not to High Earners
A study finds that salary size is a key factor in choosing an employer for people with low pay, while for highly paid workers it tends to matter less. The data cover 2020, but the situation in Latvia and the Baltics is thought to have changed little.
Pay matters to any employee in any position, but how large a role it plays when choosing an employer depends on income level. That is the conclusion of a study of the labour market in Latvia and the other Baltic states.
High pay is not the only goal
When an employee receives a high salary, it is usually no longer the leading factor. Such a person is confident that low pay is not a concern and that pay will be comparatively high at any other workplace. Other considerations therefore carry more weight, for example the chance to put one's talents to use at work. The difference between 10,000 and 11,000 euros a month is not decisive.
For low earners, every euro counts
The picture is quite different for people whose pay is very low and who live relatively modestly. For an employee earning 700 or 800 euros a month, the size of the salary is very significant when choosing an employer. The study also indicates that pay is important to workers of all ages.
Data from 2020
The study analysed the situation in 2020, but there is reason to believe that the Latvian and Baltic labour markets remain similar today. Vecuma-Veco, who commented on the findings, added that assessments of the key factors change slowly: between 2014 and 2020 the differences were relatively small.
