Internal, external and psychological dimensions of wage evaluation in Lithuania’s cultural sector

Abstract

The article examines the determinants of wages in the cultural sector in Lithuania by integrating theoretical perspectives and empirical evidence from a quantitative survey of cultural workers. Despite the crucial role of wages in ensuring labour market equilibrium, social justice and economic development, employees in the cultural sector frequently perceive their remuneration as inadequate relative to their competencies, responsibilities and the societal value of cultural work. The study investigates how internal factors (job value, relative employee value and employer’s ability to pay), external factors (labour market conditions, regional wage levels, cost of living, collective agreements and government regulations) and psychological compensation (meaningfulness, self-realisation and creative freedom) influence employees’ wage evaluations. A structured literature analysis and statistical review of national indicators were conducted, followed by a quantitative survey (n = 384), representing cultural sector employees across Lithuania. The findings reveal that internal wage determinants remain the strongest predictors of perceived fairness, whereas external determinants vary depending on socio-demographic variables such as wage level, education and occupational status. Notably, psychological compensation demonstrates significant associations with both subjective wellbeing and financial satisfaction. The results highlight systemic challenges in wage formation, including limited budgetary resources, weak collective bargaining structures and the prevalence of intrinsic motivation among cultural workers. The study contributes to understanding wage-setting complexities in publicly funded cultural systems and provides evidence-based recommendations for policymakers, cultural institutions and sectoral stakeholders.