Incomes Policy Research Articles

(Dis)Solving the Zero Lower Bound Equilibrium through Income Policy

AbstractWe investigate the possibility to reflate an economy experiencing a long‐lasting zero lower bound episode with subdued or negative inflation by imposing a minimum level of wage inflation. The income policy under investigation is formalized as a downward nominal wage growth rigidity, such that wage inflation cannot be lower than a fraction of the inflation target. This policy allows dissolving the zero lower bound steady‐state equilibrium in an Overlapping Generations (OLG) model featuring “secular stagnation” and in an infinite‐life model, where this equilibrium emerges due to deflationary expectations.

Basic Income Policy of Korea

ABSTRACT Basic income, defined as a periodic cash payment delivered unconditionally to all citizens, has become a controversial issue in some countries. It aims to alleviate poverty. This paper describes the experiments of the basic income policy conducted in Finland and Canada. Then it describes the Young Adults Dividends program in Seongnam City in South Korea. Although the program in Seongnam City does not show apparent evidence of having a positive impact on employment, it has been successful in relieving the burden of high living expenses for young citizens. This paper derives policy implications from the experience of South Korea.

Considering the attainment of work’s latent benefits under a basic income policy

Considering the attainment of work’s latent benefits under a basic income policy

AI: UBI Income Portfolio Adjustment to Technological Transformation

Positive and normative claims that artificial intelligence (AI) will or should lead to adoption of a universal basic income policy (UBI) remain insufficiently empirically grounded to merit serious consideration. Long-term trends in individual/familial income portfolio adjustment (IPA) to business, economic, and technological change (BETC) point to continued incremental changes in the ways that individuals/families achieve life goals, not a fundamental structural break necessitating radical policy changes that may not be desirable in any event. Moreover, if AI proves a more rapid disruptor than anticipated, UBI-like payments can be made quickly, as recent bailouts and fiscal stimuli demonstrate.

НАПРАВЛЕНИЯ СОВЕРШЕНСТВОВАНИЯ ПОЛИТИКИ ДОХОДОВ НАСЕЛЕНИЯ НА БАЗЕ СИСТЕМЫ СОЦИАЛЬНОЙ СТАНДАРТИЗАЦИИ В СФЕРЕ «ДОХОДЫ НАСЕЛЕНИЯ»

The article presents approaches to improving the income policy of the population on the basis of the system of social standardization in the field of «income of the population», taking into account the place and role of the income policy in the state regulation of socio-economic development of the country; as well as the national goals and strategic objectives of the development of the Russian Federation in the field of living standards of the population: «Ensuring sustainable growth of real incomes of citizens, as well as the growth of the level of pension provision above the level of inflation» and «Halving the level of poverty in the Russian Federation». These goals are proposed to be achieved through the active application of state minimum social standards in the form of a living wage and a minimum wage. The author defines the consequences of a significant increase in the minimum wage with the allocation of two spheres of influence: economic and social. The consequences of increasing the subsistence minimum to the proposed values are established: «departure» from the understated state minimum social standards in the direction of their approximation to rational (average) social standards.

FACTORS AFFECTING THE WORK MOTIVATION OF LAWYERS AT LAW OFFICES IN QUANG NGAI PROVINCE, VIETNAM

This study is conducted to investigate which factors affect the work motivation of lawyers at law offices in Quang Ngai province. The results of data analysis from a survey of 298 lawyers show that the work motivation of lawyers is most affected by Income and Benefit policy, followed by Working conditions, Relationship with colleagues, Feeling the personal role in work, Work-life balance and finally Recognition of Achievement.
 
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INVESTMENT COMPONENT OF INCOME POLICY

У статті досліджено науково-практичні засади формування інвестиційної політики як важливої складової політики доходів агропромислового підприємства. Установлено, що інвестиціями є господарські операції, котрі передбачають купівлю основних засобів, нематеріальних активів, корпоративних прав та цінних паперів у обмін на грошові кошти чи майно. Досліджено, що інвестуванням є форма економічно-фінансової діяльності, котра має на меті нарощування, збільшення капіталу; процес зростання вартості активів, котрими володіє фізична чи юридична особа. Визначено, що інвестиційною політикою є цілеспрямовані заходи на перетворення, виявлення та задоволення інвестиційних потреб. Виявлено, що результатом дієвої інвестиційної політики є створення умов для переходу до інноваційно-інвестиційної моделі розвитку економіки, яка неможлива без динамічного розвитку законодавства щодо стимулювання інвестицій. Досліджено головні вектори та фундаментальні задачі, котрі визначають інвестиційну політику агропромислового підприємства.

Demand for animal source of food in Central Java, Indonesia

Consumption of protein was often used as an indicator of household welfare. This study analyzed the impact of price andincome changeon demand foranimal food in rural households in Central Java, using the Quadratic Almost Ideal Demand System model approach. The research data used data from the National Socio-Economic Survey, totalling13, 872 households. The output appeared that a one percent increase in animal food prices reduced the demand for eggs, chicken, beef, fish, and milk by 0.505%, 1.281%, 4.099%, 3.424%, and 1.915%, respectively. The most elastic animal food group is beef, followed by milk, fish, chicken, and eggs with income elasticities of 3.278%, 2.339%, 2.156%, 1.411%, and 0.556%. All animal food is a luxury item except eggs, which are normal goods. Beef is a substitute for fish, chicken, and eggs, while milk is complementary. The price policy is more effective compared to the income policy for rural Central Java. Rural households in Central Java very responsive to changes in price.

IMPLEMENTASI KEBIJAKAN TAMBAHAN PENGHASILAN PEGAWAI (TPP) DI PROVINSI BENGKULU

The purpose of this study was to determine and analyze the implementation of the Employee Additional Income policy in Bengkulu Province. This type of research is descriptive qualitative. The type of data used is primary data obtained through interviews and documentation studies. Respondents or informants in the study were civil apparatus in Bengkulu Province Government recipients of Employee Additional Income. Data analysis method used is descriptive analysis and qualitative analysis. This study found that: (1) Terms of granting Employee Additional Income in the Bengkulu Province Government are calculated based on the determination of job weight, work performance and employee discipline, as stated in the Bengkulu Province Regulation concerning Giving Additional Income to Bengkulu Province Government Employees; and (2) Mechanisms for granting Employee Additional Income within the Bengkulu Province Government have been carried out according to operational standards for improving employee welfare in the Bengkulu Province Government, namely based on Bengkulu Province Regulation concerning Giving Additional Income to Bengkulu Province Government Employees.

Assessment of the choice of malaria diagnostic methods among household heads of the Nkwen village in Bamenda-3 municipality

Malaria remains a major threat to life in Bamenda in particular and Cameroon in general. Despite numerous and relatively affordable malaria diagnostic and treatment methods, accurate choice of diagnosis remains a major challenge to the inhabitants of the almost 14,285 households in the Nkwen village of the Bamenda 3 municipality. This study was designed to investigate the key determinants of the choice of malaria diagnostic methods (demand side analysis) in the Nkwen village of the Bamenda 3 municipality. A purposive and randomized sampling method was employed to recruit of 560 household’s heads from the 46 quarters of the Nkwen village. The Multinomial Logistic Regression Model and Chi-Square analysis were used to analyze the collected data. The findings reveal that gender, marital status, educational level, income, household size, age, religion and health insurance policy contribute to the choice of malaria diagnostic methods in the study area. Therefore, the integration of socio-economic factors into malaria control policies will feasibly contribute to malaria decrease in the study area.

Fome e insegurança alimentar em tempos de pandemia da covid-19

O artigo objetiva apresentar, a partir das contribuições de Josué de Castro, elementos para entender que os processos geradores da fome no contexto de avanço da covid-19 são anteriores, porém agravados pela situação de calamidade. A fome endêmica configura-se no horizonte das populações em extrema pobreza, sendo que estas se encontram em uma escala ascendente nos últimos anos no Brasil, especialmente a partir de 2014. Aos estados endêmicos, agregam-se os epidêmicos ou pandêmicos decorrentes dos impactos do coronavírus. Apresentam-se também estratégias na luta contra a fome e a insegurança alimentar, entre elas, destacam-se as propostas elaboradas coletivamente por movimentos sociais, sindicais e entidades organizadas em torno da agricultura familiar, da reforma agrária, dos povos e comunidades tradicionais, da agroecologia e da soberania alimentar. Entre essas ações políticas, destacam-se em caráter emergencial a reforma agrária, as políticas de renda básica, saúde, revogação da Emenda Constitucional 95, abastecimento e segurança alimentar e nutricional e o fortalecimento da capacidade produtiva da agricultura familiar camponesa e dos povos e comunidades tradicionais. Esse conjunto de indicações busca lidar com os efeitos da pandemia do coronavírus e enfrentar o agravamento da fome que se anuncia diante desta crise. Reafirma-se assim a atualidade de Josué de Castro e a importância da construção de projetos e políticas integradas de combate à fome. Isto requer mudanças nas estruturas econômicas e sociais, em especial, nas ainda necessárias reformas nas estruturas agrárias do país, assim como nas políticas de abastecimento e de segurança alimentar e nutricional.

Minimum wage in Greece and Southern Europe: Towards a new model for shaping labour relations

The article focuses on the institution of the general minimum wage in Greece and Southern Europe during the economic recession and up to the present day. The economic crisis and the way it was dealt with by European and international institutions led not only to constraints in social expenditure but also restrictive income policies, among other things. Especially in countries that found themselves involved in ‘fiscal adjustment programmes’, like Greece, Spain, and Portugal, the whole of the labour market and labour relations became the arena for radical reforms. The declared targets were increasing flexibility in the labour market, decreasing labour force costs, gradually decentralizing collective agreements, changing the way wages are determined, and strengthening of flexible forms of work. Our study examines the changes in the established method of determining minimum wage in the countries of Southern Europe that were part of fiscal adjustment programmes.

Contemporary Macroeconomic Outcomes: A Tragedy in Three Acts

The thesis developed in this paper is that contrary to the claims of its proponents, the main supply-side consequence of neoliberalism was to zap labour, institutionalize worker insecurity, and install an `incomes policy based on fear' in the US economy. Like any successful incomes policy, this diminished confliict over shares of real income and so reduced inflationary pressures - but at the cost of decoupling real wage growth from productivity growth. This last outcome fueled rising income inequality and hollowed out the wage-funded, consumption-led core of the demand-generating process. The demand-side weakness of the neoliberal economy was initially concealed by household borrowing that debt-financed increases in autonomous consumption spending. But it has asserted itself in the wake of the Great Recession, following the exhaustion of the household debt accumulation process. The result was a depressed upswing 2009- 2019 that addressed none of the fundamental structural weaknesses evident in the US economy prior to the Great Recession. The institutionally entrenched but exhausted neoliberal paradigm left the US unprepared for the onset of recession in 2020, and for the larger social and economic travails of the COVID-19 pandemic with which the initial onset of the 2020 recession was associated.

MOTIVATIONAL MECHANISM OF PROFESSIONAL DEVELOPMENT OF EMPLOYEES IN THE CONTEXT OF IMPROVING THE QUALITY OF WORKING LIFE

MOTIVATIONAL MECHANISM OF PROFESSIONAL DEVELOPMENT OF EMPLOYEES IN THE CONTEXT OF IMPROVING THE QUALITY OF WORKING LIFE

The Macroeconomic Effects of Universal Basic Income Programs

What are the consequences of a nationwide reform of a transfer system based on means-testing toward one of unconditional transfers? I answer this question with a quantitative model to assess the general equilibrium, inequality, and welfare effects of substituting the current US income security system with a universal basic income (UBI) policy. To do so, I develop an overlapping generations model with idiosyncratic income risk that incorporates intensive and extensive margins of the labor supply, on-the-job learning, and child-bearing costs. The tax-transfer system closely mimics the US design. I calibrate the model to the US economy and conduct counterfactual analyses that implement reforms toward a UBI. I find that an expenditure-neutral reform has moderate impacts on agents’ labor supply response but induces aggregate capital and output to grow due to larger precautionary savings. A UBI of $1,000 monthly requires a substantial increase in the tax rate of consumption used to clear the government budget and leads to an overall decrease in the macroeconomic aggregates, stemming from a drop in the labor supply. In both cases, the economy has more equally distributed disposable income and consumption. The UBI economy constitutes a welfare loss at the transition if it is expenditure-neutral and results in a gain in the second scenario.

ПРОБЛЕМИ СОЦІАЛЬНОГО РОЗВИТКУ МАЛОГО ТА СЕРЕДНЬОГО ПІДПРИЄМНИЦТВА В СУЧАСНИХ РИНКОВИХ УМОВАХ

Currently, the development of entrepreneurial activity in our country has a number of problems that require radical socio-economic transformations in the field of income policy, creation of modern jobs, demographic policy, vocational education, etc. One of the approaches to social consolidation is social dialogue, as one of the factors ensuring the effective development of entrepreneurial activity. Social development of entrepreneurial activity should be based on socially responsible behavior of all participants – state and local authorities, corporate structures, public organizations, citizens, which will guarantee sustainable economic and social development, improve quality of life, improve industrial relations, and ensure competitiveness and more. The basis of sustainable social development of small and medium enterprises should be the concept of social responsibility of all participants in economic relations. This concept will ensure the integration into management decisions of best practices for combining private and public interests in the conduct of business activities. One of the components of the formation of social partnership in a market economy is the process of formation of labor legislation, which at the level of regulations enshrines a system of collective bargaining between owners of means of labor and employees. In our country, social partnership is implemented through tripartite cooperation between representatives of employees, employers and the state. A joint representative body of all-Ukrainian trade unions and trade unions has been set up in the country to conduct collective bargaining and social dialogue. Social dialogue should be considered as a process of formation and development of sustainable mutually beneficial partnerships in business, aimed at coordinating and achieving strategic development goals of both individual participants in economic relations and the national economy as a whole. The main feature of such cooperation is to take into account the interests of all parties to social relations. For small and medium-sized businesses, the establishment of social dialogue will lead to the formation of sustainable economic development and increase the level of competitiveness.

Desenvolvimento de Mato Grosso do Sul: uma análise dos setores produtivos do estado a partir do modelo insumo-produto

Este trabalho visou analisar, a partir da matriz de insumo-produto, indicadores do grau de interligação setorial da economia de Mato Grosso do Sul (MS) e impactos de demanda sobre emprego e renda. Este modelo de equilíbrio geral permite que políticas de geração de emprego e renda, necessárias para o desenvolvimento do Estado, se baseiem em uma proposta voltada à Sociedade, ao Ambiente e ao Desenvolvimento Regional Sustentável. Sendo assim, os setores que mais impactam a economia do Estado foram assim identificados: Comércio e Serviços, Celulose e Produtos de Papel, Extrativa Mineral, Artigos do Vestuário e Acessórios e Artefatos de Couro. Os resultados apresentados servem de orientação para a elaboração e planejamento racional de políticas públicas e privadas que visem estimular o crescimento econômico do Estado.

The effect of minimum wage and inflationary pressure on youth unemployment in Nigeria

This study carried out an empirical investigation on the impact of minimum wage and inflationary pressure on youth unemployment in Nigeria from 1991 to 2019 using the Autoregressive Distributed Lag method to estimate the multiple regression model. The model captured the impact of Inflation, GDP Growth Rate, FDI, Government Expenditure, and Minimum Wage as determinants of youth unemployment in Nigeria. The results show that minimum wage exerts a significant impact on youth unemployment in the country, whereas inflation does not significantly influence youth unemployment. These results disapprove argument in the literature that supports minimum wage as an income policy to improve the welfare of workers in Nigeria because it raises the youth unemployment level in the country. Hence, the study concludes that minimum wage determination should be market-based. With this, the study recommends that the Nigerian government seek alternative measures of improving workers’ welfare and reduce youth unemployment in the country. Keywords: Minimum Wage, Inflation, Youth Unemployment

Can low-income households afford a healthy diet? Insufficient income as a driver of food insecurity in Europe

In Europe, food insecurity is still a serious concern for individual and public health. Although progress has been made in reducing undernourishment, other types of malnutrition such as obesity and overweight are on the rise. Policies that aim at improving healthy eating and addressing food insecurity tend to focus on food aid, nutritional education and financial incentives. These policies are generally not targeted at the problem of insufficient income as a key barrier to access a healthy diet. In this paper, we present new evidence which shows that insufficient household income and inadequate minimum income policies constitute a remaining concern for accessing a healthy diet. We make use of estimates of the minimum cost of a healthy diet in 24 European countries, in accordance with national food-based dietary guidelines. We use these unique data to (1) estimate the proportion of people living in (sub)urban areas with insufficient income to access a healthy diet, before and after housing costs, based on representative income survey data (EU-SILC), and, (2) compare the cost of a healthy diet with the level of minimum income schemes for specific household types using microsimulation techniques. We find that in 16 out of 24 countries at least 10% of the population in (sub)urban areas risks to be confronted with income-related food insecurity. Our findings show that policies directed at tackling food insecurity should be embedded in broader economic and social policies that promote an adequate income for all, and limit the cost of other essential goods and services.

Causality Relationship of Zakat, Income Inequality, and Poverty: A Panel Co-Integration Approach

Purpose: This study aims to analyze the potential of Zakat in distribution income policy and the causality relationship of Zakat income inequality and poverty. Design/Methodology/Approach: This study analyzes the causal relationship and the effect of Zakat, income inequality on poverty in 21 districts/cities of Aceh-Indonesia. To see the effect in the short and long term, time series analysis with Auto-Regressive Distributed Lag (ARDL) is used. The stages of the analysis test were carried out starting from the data stationarity test, optimal lag, cointegration test, and causality test. Findings: The estimation results show that in the long run, Zakat has a negative effect on poverty and income inequality has a positive effect on poverty. However, in the short run, both Zakat and income inequality do not affect poverty. Supported by the results of the causality test which shows that there is a one-way causal relationship between Zakat and poverty and Zakat with income inequality. Likewise, income inequality has a one-way causal relationship to poverty. Practical Implications: The findings of this research indicate that if the Zakat potential can be distributed optimally, then Zakat is the best policy solution to reduce poverty and income inequality. Originality/Value: The difference in this research from previous studies is to review the potential for Zakat that has become a regional policy in Aceh and to test it against poverty alleviation using the income inequality variable as a control variable. The analysis is strengthened by analyzing the causal relationship between the three variables.