Current Wage Research Articles

Is a single minimum wage policy viable option? Evidence from the impact of minimum wage on youth employment in Malaysia

The present study is aimed to identify an ideal mechanism to reduce negative effect of minimum wage on youth employment generation. Using available data from Department of Statistics, the study runs an annual panel regression at the state level based on fixed effect specification model. The finding demonstrates that the minimum wage has a negative effect on employment, particularly among youth. It implies that there is an excess of labour supply in the market at the current wage rate. As a result, the rate set is higher than equilibrium, signifying firm disadvantages. The negative effect is more prevalent if the single national minimum wage rate policy is applied to all states. Therefore, the national wage policy should be thoroughly examined. Instead, a regional wage rate should be explored as a potential solution for mitigating and preventing negative employment effects.

Factors that influence university graduates’ choice of postgraduate study

ABSTRACT Enrolments in university certificate and postgraduate programmes have grown considerably during recent decades. This study assesses the relationship between socio-demographic characteristics, characteristics of the university trajectory and the salary received after graduation and the decision to pursue postgraduate studies. Data for the analysis were obtained from a survey of graduates of 11 Chilean universities during 2021. Multinomial logistic regression was applied to estimate the effect of the various characteristics. The decision to enrol in a certificate or graduate programme was associated primarily with the field of the undergraduate degree programme, family income and current salary. The decision to enrol in a postgraduate degree programme was associated with parents’ education level, field of undergraduate study and academic performance, and current wage level. First-generation university graduates and those from low-income families were less likely to continue postgraduate studies. Overall social inequality among university graduates was reproduced in postgraduate education and increased in Education and Social Sciences programmes.

Does self-employment provide a bridge to retirement?

Abstract Non-employment including early retirement among individuals of older working age is a considerable concern. As life expectancies across the developed world continue to increase, individuals’ retirement savings often turn out to be inadequate. In policy circles, given the increasing old-age dependency ratio, self-employment is often seen as a potential route to extend the working lives of older labour force participants. By studying labour market switches of wage workers of 50 years and older, we investigate to what extent self-employment serves as a bridge to retirement. Using a longitudinal data base in European countries over the period 2005–2015, our findings suggest that although self-employment does serve as a bridge to retirement, this is much less likely to be the case for precarious wage workers—especially those with poor job prospects—than for wage workers at the higher end of the labour market, including those who are in good health and who have good job prospects in their current wage job. We also find that wage workers with precarious job conditions are more likely to switch into non-employment rather than into self-employment. Policy implications are discussed.

Shared-Ride Efficiency of Ride-Hailing Platforms

Problem definition: Ride-hailing platforms offering shared rides devote effort to reducing the trip-lengthening detours that accommodate fellow customers’ divergent transportation needs. By reducing shared-ride delay, improving shared-ride efficiency has the twin benefits of making shared rides more attractive to customers and increasing the number of customers a driver can serve per unit time. Methodology/results: We analytically model a ride-hailing platform that can offer individual rides and shared rides. We establish results that are counter to naive intuition: greater customer sensitivity to shared-ride delay and greater labor cost can reduce the value of improving shared-ride efficiency, and an increase in shared-ride efficiency can prompt a platform to add individual-ride service. We show that when network effects are small, increasing shared-ride efficiency pushes wages to extremes: if the current wage is high (low), increasing shared-ride efficiency pushes the wage higher (lower). We provide a sharp characterization of whether shared-ride efficiency and labor supply are complements or substitutes. We provide simple conditions under which increasing shared-ride efficiency reduces (alternatively, increases) labor welfare. We provide evidence that increasing shared-ride efficiency increases consumer surplus. Managerial implications: Our results inform a platform’s decision of whether to invest in improving shared-ride efficiency, as well as how to change its service offering and wage, as shared-ride efficiency improves. Supplemental Material: The online supplement is available at https://doi.org/10.1287/msom.2021.0545 .

Worker Beliefs About Outside Options

Abstract Standard labor market models assume that workers hold accurate beliefs about the external wage distribution, and hence their outside options with other employers. We test this assumption by comparing German workers’ beliefs about outside options with objective benchmarks. First, we find that workers wrongly anchor their beliefs about outside options on their current wage: workers that would experience a 10% wage change if switching to their outside option only expect a 1% change. Second, workers in low-paying firms underestimate wages elsewhere. Third, in response to information about the wages of similar workers, respondents correct their beliefs about their outside options and change their job search and wage negotiation intentions. Finally, we analyze the consequences of anchoring in a simple equilibrium model. In the model, anchored beliefs keep overly pessimistic workers stuck in low-wage jobs, which gives rise to monopsony power and labor market segmentation.

Анализ влияния монетарной и экономической политики на рост ВВП Российской Федерации в 2024–2025 годах

The subject of the study is the influence of monetary and economic policies pursued by the Government of the Russian Federation on ensuring the economic stability of the country. The purpose of the work is to forecast real GDP growth due to the current wage policy, increasing household savings and supporting other demand factors based on correction and regression analysis, which makes it possible to find out between the characteristics under consideration and, if there is one, to calculate the measure of dependence using mathematical tools. To do this, it is proposed at the first stage to create an econometric model linking the growth of consumption and economic growth of the Russian Federation, at the second stage - to create and describe a model that allows us to consider the influence of the average nominal wage, the volume of lending to the population, the volume of savings and the level of inflation on the level of consumption in Russian Federation. The scientific novelty of the study lies in obtaining current data that allows us to identify the necessary level of the above factors to achieve the economic development planned by the Russian Ministry of Economic Development and growth of real GDP. As a result of the study, it was concluded that such a factor as the inflation rate is insignificant for analyzing the current economic situation in Russia. When developing effective measures to achieve the desired level of economic growth, according to the constructed model, the level of average nominal wages and the volume of household deposits are of greater importance. The effectiveness of the use of monetary measures used by the Bank of Russia to stabilize the economy has been confirmed.

Problems and Prospects of Employees in the Manufacturing Sector in the Haridwar District of Uttarakhand, India

The manufacturing sector serves as a critical driver of economic growth and employment generation in numerous regions worldwide. Haridwar, located in the northern Indian state of Uttarakhand, has emerged as a vibrant industrial hub, attracting significant investments and witnessing rapid industrialization in recent years. The manufacturing sector in Haridwar encompasses a wide range of industries, including automotive, pharmaceuticals, consumer goods, and textiles, among others. The sector’s growth has led to a substantial increase in employment opportunities, attracting a diverse workforce seeking stable livelihoods. While Haridwar’s manufacturing sector development has brought many advantages, it has also produced a number of difficulties for the workers in this fast-paced sector. In order to comprehend the effects on the general well-being, work satisfaction, and future possibilities of the manufacturing sector employees in Haridwar, it is imperative to examine and analyse these difficulties. Every employee is a fortune for their organization, and their skills contribute to its growth. The present research article aims to investigate the problems and prospects faced by manufacturing sector employees in Haridwar. The primary data used in the study was collected from 100 employees (from 20 factories) in the manufacturing sector through a well-structured questionnaire administered by interview. Tools used in the study are Microsoft Office and the Statistical Package for Social Science (SPSS), which are used to interpret the data. Wilcoxon signed-rank test statistics are used to test the hypothesis. The study’s main findings are that male dominance occurred in this sector; most employees graduated and got professional degrees. More than 80% got below 40k as their monthly income, while about 65% were unsatisfied with their current wages. The main problems faced by the employees are poor working conditions, followed by low salaries, a lack of employment security, long working hours, health problems, a lack of social benefit schemes, a lack of medical facilities, a lack of awareness about the government’s welfare schemes, and a lack of transportation to reach their workplace.

Need for living wages in India: Case studies of agricultural workers in rural Madhya Pradesh

AbstractThe present study discusses the current wage situation in India and the need for living wages as workers and employees grapple with the cost of living crisis. A case study of two districts of Madhya Pradesh (MP) state is presented to demonstrate how the living wage benchmarks based on the Anker Methodology compare with existing minimum wage fixations and other development indicators. The living wage benchmarking is based on field surveys conducted in Ratlam and Chhindwara districts in October–December 2021, and a rigorous analysis of nationally representative consumption and expenditure surveys conducted by the National Sample Survey Organisation and the Centre for Monitoring Indian Economy. Our living wage estimates are 1.8 times the minimum wages for agricultural labourers and 43% more than those earned by non-agricultural unskilled labourers. Moreover, the actual wages reported are less than half of the estimated living wages, indicating that the current incomes and wages for workers and farmers of rural MP are far from adequate to lead a decent life.

Research on Compensation Incentive Mechanism of State-Owned Enterprises - A Case Study of Chinese Enterprises

The sudden change in the global economic situation has brought about changes in internal and external market conditions. In this context, China's state-owned enterprises continue to use the traditional salary management model in the salary system, which has many shortcomings in the degree of market openness, distribution mechanism and supervision, which is not conducive to our economic development. It is very important to establish and improve the salary incentive mechanism of state-owned enterprises. A scientific and perfect incentive mechanism can effectively stimulate the enthusiasm and creativity of employees and play a vital role in the healthy and sustainable development of public enterprises. However, with the progress and development of the times, the traditional wage incentive mechanism has exposed some problems that cannot fully function. To this end, this paper analyzes the problems in the current salary management model of state-owned enterprises and finds that performance-based salary incentives actually reflect the wealth created by employees for their work. The consistency of goals among employees, managers and shareholders. Finally, from the existing problems, measures are proposed to improve the current wage management model of SOEs in order to enhance their economic development.

Austria: Policies dealing with the inflation crisis

Inflation in Austria started to rise from mid-2021 during recovery from the Corona crisis. The Russian invasion in Ukraine and the heavy increases in energy prices made things worse and brought inflation to over 10%. The government did not enter into direct formal negotiations with social partners but subsequent anti-inflation packages met many demands made by the social partners. The attempt to influence wage negotiations via a tax exemption for one-off payments failed as they were not widely used in collective agreements. One-off payments are not suitable to compensate for permanent real wage losses. Current wage negotiations are tougher than usual, requiring long negotiation rounds including the thread of industrial action. The policy of unions to base their demand on past inflation allows for a substantial delay in nominal wage increases. The government has not yet included more direct measures to fight high inflation, like direct price controls, changes to the design of markets, or reforms of the automatic housing rent indexation. The wage setting system in Austria is still working but it will remain difficult to reach agreements, especially as a substantial part of the real wage losses has to be recovered over the coming years. A stronger use of regulatory measures and direct public involvement in the energy, housing and potentially the food price sector might be required if the current energy supply crisis and the transformation to a low carbon economy should be managed successfully in the future.

Do women expect wage cuts for part-time work?

I quantify the perceived changes in hourly wage rates associated with working different hours on the same job for a representative sample of female workers. While part-time working women expect significant hourly wage gains from switching to full-time work - 7% on average - full-time workers expect no effect on current wages when switching to part-time, on average. Perceived pecuniary losses from part-time work are most pronounced among full-time working mothers and women in managerial jobs. Using density forecasts, I document a large uncertainty about the perceived pay gap that correlates with the probability to report extreme wage penalties, as well as with worker characteristics. Comparing beliefs with selectivity-corrected estimates of the objective part-time penalty further indicates that full-time workers on average underestimate part-time wage losses, whereas part-time workers tend to overestimate full-time wage gains.

As Wages Increase, Do People Work More or Less? A Wage Frame Effect

In jobs in which workers have the flexibility to decide how much work to supply, such as in the gig economy, the effect of a wage change on work supply can be hard to predict. A wage increase offers workers the opportunity to make more money. At the same time, it allows them to make money faster, so they can enjoy more leisure and do not need to work as much. Economic theory alone does not predict which outcome is more likely to occur, and the empirical evidence is also mixed. This paper provides some psychological insights into this economic problem by showing that the short-term effect of a wage change on work supply depends on how the change is framed. Given a current wage of “work l hours to earn $m,” a pay-change frame (“work the same l hours and earn $M”) facilitates a change in work supply in the same direction as the wage change, whereas a load-change frame (“work L hours and earn the same $m”) facilitates the opposite change. Hence, if strategically framed, a wage decrease can elicit the same increase in work supply as a wage increase. A set of studies demonstrate this wage frame effect on both actual work performance and expressed willingness to work. The findings from these studies offer a behavioral perspective on a classic labor economics problem, document a novel framing effect for the judgment and decision-making literature, and suggest a nudge strategy that managers and policy makers can use in incentive designs. This paper was accepted by Yuval Rottenstreich, behavioral economics and decision analysis. Funding: The research of L. Shen was supported by the Research Grants Council, University Grants Committee of Hong Kong [Grant GRF 14501317]. The research of S. D. Hirshman was supported by the Center for Research on Consumer Financial Decision Making, the University of Colorado Leeds School of Business, and The Research Council of Norway (FAIR, project 262675). Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2022.4591 .

A labor market view on the risks of a U.S. hard landing

This paper uses historical labor market data to assess the plausibility that the Federal Reserve can engineer a soft landing for the economy. We first show that the labor market today is significantly tighter than implied by the unemployment rate: the vacancy and quit rates currently experienced in the United States correspond to a degree of labor market tightness previously associated with sub-2 percent unemployment rates. We highlight that the super-tight labor market coincides with current wage inflation of 6.5 percent – the highest level experienced in the past 40 years – and that firm-side slack measures predict further increases in wage inflation over the coming year. Finally, we show that high levels of wage inflation have historically been associated with a substantial risk of a recession over the next one to two years. We argue that periods that historically have been hailed as successful soft landings have little in common with the present moment. Our results suggest a very low likelihood that the Federal Reserve can reduce inflation without causing a significant slowdown in economic activity.

Sistem Pengupahan Tenaga Kerja Peternakan Sapi Potong CV. Mtr Jaya Abadi

The purpose of writing this final project is to find out whether the remuneration system of CV. Mtr Jaya Abadi is good and effective, namely by describing the wage system. CV wage system data. Mtr Jaya Abadi was obtained from the results of interviews, observations, and documentation. The results of the description are compared with existing theories so that the merits and weaknesses of the company's wage accounting system can be identified. This study uses descriptive analysis method to analyze the data, which describes the current wage accounting system by outlining the components in it. The results of the data indicate that the wage accounting system that is run is in accordance with the existing wage system theory, so it is said to be good

THE INTENSITY OF IMPACT OF LABOR SUPPLY REDUCTION ONTO THE GROWTH OF WAGES IN REPUBLIC OF SRPSKA

The aim of this research is to determine the level of intensity of the impact of labor supply reduction onto the growth of wages in Republic of Srpska. Simple linear regression is the main tool that is used in this research. The model of the relationship is established between two variables, the labor supply reduction and growth of wages in order to draw conclusions about the behavior of one, based on the behavior of the other variable. Concerning the results, we have seen that there is a marked reduction in labor supply at the level of the entire economy of Republika Srpska and a significant growth of wages. More importantly, the wage growth is very strongly influenced by labor supply reduction. By statistical regression analysis, we have determined the statistically significant, strong impact of the reduction of labor supply on wage growth (y = -0.004x + 2365.3; R=-0.91; R2=0.83; p0.01). There is a general trend of wage growth that the pandemic crisis has not stopped and which will certainly continue in the post-crisis period. However, the key question is whether this kind of growth is sustainable. Unfortunately, there is a decline in labor productivity. The decline in gross value added per worker or labor productivity has been more or less pronounced in the three observed years. Current wage growth, with declining productivity, is not sustainable in the long run. If things with productivity remain as they have been for the three observed years and if the wage growth continues, it will inevitably lead to reduced competitiveness of the economy. The RS economy can avoid this trap if productivity starts to rise again. Improving productivity requires large investments in knowledge and technology, and companies need public sector support in this area.

Does GPA matter for university graduates' wages? New evidence revisited.

This paper examines the effect of GPA on graduating students' wages using a data set from an elite university in China. Students are homogenous since their majors are closely related to economics and business The OLS regression results indicate that GPA has positive and significant impacts on wages on average. As GPA increases by 1 unit, the starting monthly wage increases by 29.6 percent on average, and the wage in the survey year that is 3-5 years after graduation (current wage) soars by 25 percent. Theoretically, the GPA matters for the wages due to both the human capital or signaling effect. Given that the signaling effect should diminish over time, and the effect on starting wage is a little larger than that on current wage, it is suggested that signaling effect of GPA should be trivial, and high GPA is associated with high wage should be mainly due to the human capital effect. These results are robust to different model specifications. The distributional analysis suggest that the effects are positive for both wages and significant for almost all quantiles. In addition, the effect is basically the same from the 0.05th to 0.80th quantiles, and then rises as the starting wage increases. The effect on current wage is a U shape from the 0.05th to 0.60th quantile, and then becomes an inverse-U shape with peaks at the 0.75th and 0.80th quantiles where the effect is 82.2 percent when GPA increases by one unit.

Facility characteristics and costs associated with meeting proposed minimum staffing levels in skilled nursing facilities.

Federal minimum nurse staffing levels for skilled nursing facilities (SNFs) were proposed in 2019 U.S. Congressional bills. We estimated costs and personnel needed to meet the proposed staffing levels, and examined characteristics of SNFs not meeting these thresholds. This was a cross-sectional analysis of 2019Q4 payroll data, the Hospital Wage Index, and other administrative data for 14,964 Medicare and Medicaid-certified SNFs. We examined characteristics of SNFs not meeting proposed minimum thresholds: 4.1 total nursing hours per resident day (HPRD); 0.75 registered nurse (RN) HPRD; 0.54 licensed practical nurse (LPN) HPRD; and 2.81 certified nursing assistant (CNA) HPRD. For SNFs falling below the thresholds, we calculated the additional HPRD needed, along with the associated full-time equivalent (FTE) personnel and salary costs. In 2019, 25.0% of SNFs met the minimum 4.1 total nursing HPRD, while 31.0%, 84.5%, and 10.7% met the RN, LPN, and CNA thresholds, respectively. Only 5.0% met all four categories. In adjusted analyses, factors most strongly associated with SNFs not meeting the proposed minimums were: higher Medicaid census, larger bed size, for-profit ownership, higher county SNF competition; and, for RNs specifically, higher community poverty and lower Medicare census. Rural SNFs were less likely to meet all categories and this was explained primarily by county SNF competition. We estimate that achieving the proposed federal minimums across SNFs nationwide would require an estimated additional 35,804 RN, 3509 LPN, and 116,929 CNA FTEs at $7.25 billion annually in salary costs based on current wage rates and prepandemic resident census levels. Achieving proposed minimum nurse staffing levels in SNFs will require substantial financial investment in the workforce and targeted support of low-resource facilities. Extensive recruitment and retention efforts are needed to overcome supply constraints, particularly in the aftermath of the COVID-19 pandemic.

Problems of accounting for work payment calculations during the period of martial status and ways of improvement

The article carries out a comprehensive study of the problems of labor and its payment under martial law. There is a well-known multi-level regulatory regulation of wages. Job loss due to Russia's invasion of Ukraine. The standard definition of the concept of "salary" and its content are analyzed. It was established that "salary" is not defined by law. The current state of payroll accounting and its reflection in the accounting policy is analyzed. As a result of the study of activities during the martial law period, the most controversial issues of receiving funds from employers, the largest employees and the state, which is becoming more widespread, have been clarified. Changes to the current legislation and new methods of regulating labor relations related to martial law are evaluated. The basics of accounting and taxation of wages in the conditions of martial law and ways to solve them are given. It is proposed to make changes at the legislative level of a part of the state in the specifics at the initiative of the employer in the conditions of martial law of termination of the employment contract. It was noted the need for the employer to use all possible measures to ensure the realization of the rights of employees to receive current wages during wartime. The importance of accounting and taxation of wages in the conditions of martial law is determined. This stipulates that the employer is obliged to pay wages under the specified conditions defined by the employment contract and in accordance with current legislation. Each payment must be accompanied by a transfer of personal income tax, military duty and a single social contribution. In case of impossibility of payment of wages due to hostilities, payment may be suspended only until the moment when the enterprise can use its main activity. The results presented in the article have a practical orientation, so subjects of entrepreneurial activity can be used to solve problems related to payment of labor. martial law, wages, taxation, legislation, accounting of payments.

Dual Returns to Experience

In this paper we study human capital accumulation and wage trajectories of young workers in a dual labor market. Using rich administrative data for Spain, we follow workers since labor market entry to measure experience accumulated under different contractual arrangements and relate it to current wages. We show that returns to experience accumulated in fixed-term contracts are, on average, lower than the returns to experience acquired in permanent jobs. However, this gap masks significant heterogeneity across individuals. The gap in returns widens along the skill distribution, where workers in the upper tail have the largest difference in returns. Moreover, among equally experienced workers, higher incidence of temporary employment in the past is associated with substantially lower wages. Ultimately, heterogeneous returns to experience translate into significant changes in the position of workers along the distribution of wage growth after 15 years in the labor market, bearing implications for life-cycle wage inequality.

고용위기 시대 한국기업 임금체계 실행 고찰

In this study, we tried to present practical implications of the effectiveness of the HR system through the research of the wage system of Korean companies in the period of employment crisis. Prior research related to the wage system were considered and team leader-level staff in charge of establishing/ improving/executing corporate HR policies were selected for research. And on-line surveys and in-depth interviews were conducted. It was confirmed that the wage system was treated as one of the HR system implemented but as an organizational and cultural factor optimized over a long period of time. It was also confirmed that the entity’s field needs for a level of practical research that can be used as a direct focus on the improvement and implementation of the current wage system. The results of this study led to the conclusion that securing its effectiveness through gradual application was the direction of implementation of the wage system in the period of employment crisis, considering that it was established over a long period of time under the influence of the labor market and organizational culture.