Abstract

The aim of the study is to determine the spatial differentiation of wages and their selected determinants in the Ukrainian regions within 2004—2016. Based on data of the Ukrainian statistical office (the State Statistics Service of Ukraine), panel regression methods (OLS and GMM with individual and random effects) were used.It follows from the deliberations that the Ukrainian economy developed very rapidly to the global financial crisis and the Ukrainian-Russian gas conflict (2008and2009). Labor productivity increased, unemployment fell, which translated into increased wages in all Ukrainian regions. Then, also due to the political and military conflict after Euro-Maidan (2013 and 2014), GDP, labour productivity and wages decreased, while unemployment increased (especially in the Donbas). This, in turn, leads to the economic emigration of inhabitants and the gradual depopulation of Ukraine.

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