Wage Indexation Research Articles

Estimating the Effects of the Minimum Wage Using the Introduction of Indexation

We examine the impacts of the minimum wage on employment using the minimum-wage hike induced by the introduction of indexation of the local minimum wage to the local cost of living. The revision of the Minimum Wage Act in 2007 of Japan essentially required the government to set the minimum wage indexed to the local cost of living, with a five-year moratorium period. The government subsequently increased the minimum wage in areas where the cost of living was high relative to the local minimum wage. Allowing for different trends in labor-market outcomes across regions in the pre-treatment period, we find that the minimum-wage hike raised the wages of low-wage workers, but reduced the employment of less-educated young men. A panel analysis based on matched Labor Force Survey data indicates that the minimum-wage hike decreased the job flows of prime-age men and women.

Рівень життя населення та напрями його підвищення в умовах пандемії COVID-19

The article considers the impact of the COVID-19 pandemic on living standards in Ukraine and countries around the world. The status of the indicators of labor market development and the macro-economic indicators reflecting the standard of living of the population are evaluated. Negative tendencies of changes in unemployment rate during 2013–2020 and its exacerbation during the COVID-19 pandemic are determined. The authors analyzed changes in GDP levels in Ukraine and in Central and Eastern Europe, trends in the decline in the real wage index in Ukraine are highlighted. It is noted that the COVID-19 pandemic and quarantine restrictions have led to significant socio-economic consequences that have negatively affected the standard of living of the population of Ukraine. This is evidenced by the growth of unemployment of the population and a decrease in the level of real wages, the deterioration of macro-economic indicators, in particular gross domestic product. In order to increase the standard of living of the population in the context of the COVID-19 pandemic, measures have been identified that include: enhancing the amount of financial support for small and medium-sized businesses, providing tax benefits to enterprises that employ graduates of educational institutions; raising minimum social standards taking into account their corresponding level in the EU countries; development and implementation of the State-based social programs aimed at supporting socially vulnerable categories of the population in the context of the COVID-19 pandemic; improving the investment climate and attracting investments to the real sector of the economy; stimulating the development of youth entrepreneurship, introducing dual education, forming an effective dialogue in the spheres of education and business; use of reserves for the introduction of innovative forms of employment and self-employment of the population (freelance, part-time work, etc.).

Forecast of China's economic recovery in the context of the COVID-19 pandemic

The new crown pneumonia epidemic outbreak has had a severe impact on the economy and people's lives across China. Due to the mutation and contagious nature of the new crown pneumonia, economic recovery has been restricted. This article analyzes and predicts based on the data of eight provinces in China in the past six years (2015-2020), observes and discusses the degree of the economic impact of each province, and compares and analyzes the overall economic changes before, during, and after the epidemic. During the epidemic period, the eight provinces will be affected by the ten economic indicators. The eight provinces and China's economic recovery conditions will be put forward to achieve epidemic prevention and control. Implementation and recovery of economic development. In response to problem one of economic recovery forecasting, this article selects representative and relevant provinces from different regions of China for discussion. In order to avoid the concentration of selected provinces and the phenomenon of partial coverage, the Chinese regions are divided into Xinjiang and Qinghai from the northwest section, Sichuan and Yunnan from the southwest section, Hubei and Henan from the central China section, and from the northeast. Heilongjiang is selected for the lot, and Guangdong is selected from the South China lot. This article selects regional GDP, average real wage index, urban registered unemployment rate, and consumer price index as the consideration indicators. The four economic macro indicators are used to judge the goodness of fit through data fitting to establish a well-fitting correlation equation. Then, through the time series AR forecasting model, the forecast values of the four economic macro indicators for 2020 are calculated and compared with the actual values in the yearbook in 2020 to judge the overall economic changes in the middle of the epidemic. In addition, by comparing the year-on-year growth rate of economic development from January to March 2019-2021, the economic changes in the later epidemic period can be obtained. To obtain the degree of impact of the epidemic on each of the relevant economic indicators of the eight provinces, this paper uses the analytic hierarchy process to assign the degree of impact to the ten economic indicators to calculate the relevant weights, and conduct a consistency test by the consistency ratio. On this basis, this paper calculates the weighting influence of each province on each economic indicator, and then uses the total target weight as the basis for judging the severity of the impact of the new crown epidemic on each province, and compares and ranks it accordingly. Then, this article compares the weights of various economic indicators in each province to analyze the data results and find the objective reasons for the phenomena. In order to quantify the economic impact of each province, this paper uses the gray forecast GM (2,1) model to predict the economic error of GDP in 2021. Based on the first quarter of the GDP of each province in 2021, multiply it by 4 to get the theoretical annual GDP. Discuss the extent of the impact of the sporadic and small-scale outbreaks. Suppose the theoretical value is greater than the predicted value. In that case, it means that the province’s epidemic prevention and control has been done properly, the economy has recovered significantly, and currency circulation has increased. If the theoretical value is less than the predicted value, it means that the province is greatly affected by the repeated outbreaks and economic recovery is restricted. Regarding the economic impact of the entire country, we use GDP as a test indicator to predict the national GDP in 2021 through the gray forecast GM (2,1) model from GDP in 15-20 years. In the same way, based on the first and second quarters of 2021, the theoretical national GDP of 2021 is obtained by adding and multiplying by two, and comparing the GDP year-on-year growth rate with the predicted growth rate, the development trend and sporadic exposure to the epidemic can be obtained. The magnitude of the impact that occurred. Finally, this paper carries out error analysis and consistency check on the established model, and at the same time evaluates the advantages and disadvantages of the model.

Local Public Goods and the Spatial Distribution of Economic Activity

Using French data, we provide: a) causal evidence that a drop in local public goods provision decreases private sector activity, and b) evidence consistent with monopsony power of the public sector in local labor markets. We introduce a public sector with these two key characteristics in an otherwise standard spatial equilibrium model, and show that it delivers the main stylized facts established in our data, in particular, that the share of the public sector relative to the private is independent of the productivity of the city. We emphasize the tradeoffs between allowing governments to freely choose local public employment and wages (as in most of the US public sector), versus imposing rules that constrain public sector pay with some indexation to the local cost of living (as in many European countries). We show that wage indexation limits monopsony power -- leading to a larger public sector -- and is optimal if the indexation is sufficiently strong.

ОЦІНКА ВПЛИВУ БІЗНЕС-СЕРЕДОВИЩА НА ПРИБУТКОВІСТЬ ПІДПРИЄМСТВ

Based on the correlation and regression analysis, the article assesses the influence of external and internal factors of the business environment on the profitability of modern enterprises. The directions of improving the strategy for managing the profitability of domestic enterprises in the conditions of the dynamism of the business environment are determined, the implementation of which will give their leaders the opportunity to focus on the priorities of long-term development. Taking into account the impact of the variability of the business environment will allow enterprises to form an adaptation buffer in the face of the transformational challenges of our time. The expediency of carrying out a systematic assessment of the factors of the business environment for the activities of enterprises has been substantiated, the results of which will make it possible to adjust the priorities for the future development of entrepreneurial structures. The carried out correlation and regression analysis of the influence of the business environment made it possible to determine the progressive directions of the strategy for managing the profitability of enterprises. With the help of a quantitative assessment, a significant relationship was determined between the cost of goods sold and net profit, as well as the dependence of net profit on macroeconomic indicators of the country's development, in particular: the real wage index and the growth rate of nominal GDP. In today's dynamic business environment, one of the most important factors in the competitiveness of any enterprise is the development and implementation of a profit management strategy. Therefore, the authors have proposed strategic actions to manage profitability at the conditionally taken enterprise "XXX", namely: creation of an information base: analysis of the volume and composition of the income received; indicators that determine their size and leve; development of a forecast of possible options for the distribution of income by type of activity and their assessment; formation of the optimal variant of the distribution of enterprise income.

Wage Setting Behaviour of Firms in Industrial Estates of Khyber Pakhtunkhwa, Pakistan

The objective of the study is to analyze the wage setting behaviour of firms. For this study four major industrial estates of Khyber Pakhtunkhwa. Using stratified random sampling, data is collected from 342 firms. Multinomial logistic model is used to estimate the effects of determinants on wage change. Most of the firms change wage rate once in a year. Majority of the firms follow time-dependent wage policy. Half of the firms, which are following time-dependent wage policy, change the wage rate at the end or start of the fiscal year. Most of the firms are not found to index wages. Moreover, the percentage of firms not involved in wage indexation is higher for daily workers than for permanent worker. Labor productivity, employment level in the economy, government regulations, taxes, demand for the product, and inflation are important factors of wage change, but the most important factor is the labour productivity and least important is pressure from the labour union. Imperfect competition and size of the firms are the important determinants of wage flexibility, while wage indexation, information set of expected inflation and fringe benefits provided to workers are the important determinants of wage rigidity. It is important for Pakistan to avoid wage cuts at the times of recession and disinflationary policies be carefully designed as sacrifice ratio, albeit moderate, is not zero.

Wage indexation as a means of ensuring that real wage levels are raised

The article considers issues related to the state guarantee of ensuring an increase in the level of real wage content, the definition of the concept of “wage indexation”, the procedure for its implementation and the mechanisms for determining the amount based on the approaches developed in the science of labor law and judicial practice taking into account priorities in the field of social and labor relations.

Abstract 13412: Electronic Consultation for the Management of Atrial Fibrillation is Associated With Higher Healthcare Costs

Introduction: A study of 42,000 cardiology consults within the Veterans Health Administration (VHA) in 2016 found that patients who received electronic consultation (e-consults) had similar healthcare costs at 6 months compared to those who received face-to-face (F2F) consults. However, results may have been confounded if patients with less costly conditions received e-consults. Our aim was to compare costs between those receiving F2F vs. e-consults for a similar indication. Hypothesis: Electronic rather than F2F consultation for atrial fibrillation (AF) management will be associated with lower total healthcare costs. Methods: We conducted a retrospective cohort study of a national sample of VHA patients who received cardiology consultation in 2016. We used a natural language processing script to identify consults for AF management. Primary outcomes were total healthcare costs at 3 and 6 months. Secondary outcomes included inpatient and outpatient costs. We compared costs between groups using a generalized linear model with a gamma distribution and log link. We adjusted for community wage and Charlson comorbidity indices, distance to nearest facility, age, and gender. Standard errors were clustered at the facility level. Results: We sampled 176 F2F and 136 e-consults from 43 facilities. Mean total 6-month costs were $12,928 (95% confidence interval [CI]: 1,377; 40,644) and $8,286 (95% CI: 959; 31,320) among e-consult and F2F groups, respectively. The e-consult group had 12.3% higher 3-month (p<0.001) and 41.5% higher 6-month total healthcare costs (p<0.001) in comparison to the F2F group. At 3 months, the e-consult group had 25.1% lower inpatient costs (p<0.001) and 32.5% higher outpatient costs (p<0.001). At 6 months, the e-consult group had 6.3% higher inpatient costs (p<0.001) and 48.4% higher outpatient costs (p<0.001). Conclusions: Use of e-consults for AF management is associated with reduced inpatient costs at 3 months, but higher total costs, which were largely driven by outpatient costs. Improving our understanding of healthcare utilization after initial consultation, or in differences in reasons for consultation within AF management may help explain these differences.

The Level of Well-being of the Working Population as a Concentrated Expression of the Quality of Working Life

The purpose of the article is to substantiate the need and the possibility of improving the quality of working life in Russia as one of the main factors in the growth of the well-being of the working population. The author examined the influence of the conditions of employment of the workforce in the process of its reproduction and proved that the wage index (among all components of the quality of working life) has particular importance. The author also presented the tools of expert assessment of the quality of working life from the point of view of the achieved level of wages. Using these tools the author compiled a generalised characteristic of the current state of the quality of working life in Russia according to four criteria in terms of the achieved level of wages necessary to perform the reproductive function. Comparative analysis of the dynamics of nominal and real wages in the Russian economy for the years 2000–2018 showed a significant, long-term lag between growth of real and nominal wages. Further, the author showed the profile of Russian poverty concerning the main components of the quality of working life and presented the social and economic consequences of not decreasing poverty. Finally, the author constructs a set of socio-economic indicators of the standard of living of the working population due to the low level of satisfaction of the needs of workers and their families in nutrition, education, health, related to the deficit of family budgets. It makes possible to choose the main directions of the formation and implementation of the state and corporate social policy to overcome the negative trends in the level and quality of life of the working population associated with low quality of working life.

Variability in Medicaid Reimbursement in Hand Surgery May Lead to Inequality in Access to Patient Care.

Medicare (MCR) and Medicaid (MCD) remain the dominant providers of government-funded health insurance in the United States. The purpose of this study was to evaluate the variability between MCR and MCD reimbursements for common hand and wrist surgical procedures. We hypothesized that MCD reimbursement rates would have substantial variation between states, whereas MCR rates would remain relatively constant. Using the Medicare Physician Fee Schedule Database, the 2019 reimbursements for 7 common hand and wrist procedures were recorded via the respective Current Procedural Terminology codes. The MCD reimbursement rates were then obtained from each state's physician fee schedule database. Comparisons of reimbursement for these procedures were then calculated between states and between MCD and MCR while adjusting for cost of living using the Medicare Wage Index. Finally, the coefficients of variation were computed to compare the extent of variability between the insurance types. Across all procedures, reimbursement rates for MCD ranged from 30.6% to 240% of the average MCR reimbursement, with the mean reimbursement for MCD valued at 78.3% of MCR. Endoscopic carpal tunnel release (CTR) is valued similarly by MCD compared with open CTR with an average of 77.7% and 78.2% reimbursement of MCR, respectively. The coefficients of variation for MCD reimbursements ranged from 0.25 to 0.45, whereas the value was 0.06 for all MCR procedures. These findings demonstrate a wide variation in MCD payments between states. When compared with MCR, the lower average state MCD reimbursement questions the sustainability for hand surgeons to accept these patients in practice.

Interhospital competition and hospital charges and costs for patients undergoing cranial neurosurgery.

Research has documented significant growth in neurosurgical expenditures and practice consolidation. The authors evaluated the relationship between interhospital competition and inpatient charges or costs in patients undergoing cranial neurosurgery. The authors identified all admissions in 2006 and 2009 from the National Inpatient Sample. Admissions were classified into 5 subspecialties: cerebrovascular, tumor, CSF diversion, neurotrauma, or functional. Hospital-specific interhospital competition levels were quantified using the Herfindahl-Hirschman Index (HHI), an economic metric ranging continuously from 0 (significant competition) to 1 (monopoly). Inpatient charges (hospital billing) were multiplied with reported cost-to-charge ratios to calculate costs (actual resource use). Multivariate regressions were used to assess the association between HHI and inpatient charges or costs separately, controlling for 17 patient, hospital, severity, and economic factors. The reported β-coefficients reflect percentage changes in charges or costs (e.g., β-coefficient = 1.06 denotes a +6% change). All results correspond to a standardized -0.1 change in HHI (increase in competition). In total, 472,938 nationwide admissions for cranial neurosurgery treated at 896 unique hospitals met inclusion criteria. Hospital HHIs ranged from 0.099 to 0.724 (mean 0.298 ± 0.105). Hospitals in more competitive markets had greater charge/cost markups (β-coefficient = 1.10, p < 0.001) and area wage indices (β-coefficient = 1.04, p < 0.001). Between 2006 and 2009, average neurosurgical charges and costs rose significantly ($62,098 to $77,812, p < 0.001; $21,385 to $22,389, p < 0.001, respectively). Increased interhospital competition was associated with greater charges for all admissions (β-coefficient = 1.07, p < 0.001) as well as cerebrovascular (β-coefficient = 1.08, p < 0.001), tumor (β-coefficient = 1.05, p = 0.039), CSF diversion (β-coefficient = 1.08, p < 0.001), neurotrauma (β-coefficient = 1.07, p < 0.001), and functional neurosurgery (β-coefficient = 1.11, p = 0.037) admissions. However, no significant associations were observed between HHI and costs, except for CSF diversion surgery (β-coefficient = 1.03, p = 0.021). Increased competition was not associated with important clinical outcomes, such as inpatient mortality, favorable discharge disposition, or complication rates, except for lower mortality for brain tumors (OR 0.78, p = 0.026), but was related to greater length of stay for all admissions (β-coefficient = 1.06, p < 0.001). For a sensitivity analysis adjusting for outcomes, all findings for charges and costs remained the same. Hospitals in more competitive markets exhibited higher charges for admissions of patients undergoing an in-hospital cranial procedure. Despite this, interhospital competition was not associated with increased inpatient costs except for CSF diversion surgery. There was no corresponding improvement in outcomes with increased competition, with the exception of a potential survival benefit for brain tumor surgery.

Italy and the Little Divergence in Wages and Prices: New Data, New Results

We present new wage indices for skilled and unskilled construction workers in Italy. Our data avoid multiple issues pestering earlier wages, making our new indices the first consistent ones for early-modern Italy. Our improved wages, obtained from the St. Peter’s Church in Rome, consolidate the view that urban Italy began a prolonged downturn during the seventeenth century. They also offer sustenance to the idea that epidemics instigated the decline. Comparison with new construction wages for London shows that Roman workers outearned their early-modern English counterparts. This suggests that high wages alone were not enough to trigger industrialization.

Does the Salary of Elementary and Middle School Teachers Affect Students’ Participation in Extracurricular Tutoring?

Based on the data of China Family Panel Studies 2016 (CFPS 2016), this study analyzed the effect of teacher wage index on students’ participation in extracurricular tutoring through a two-layer linear model. We found that the wage index of elementary and middle schools teachers in China is generally low, and this index had a significant negative impact on students’ participation in extracurricular tutoring, i.e., the lower the teacher’s wage index, the higher the participation rate of students’ extracurricular tutoring. Governments at all levels should increase financial investment in elementary and middle schools teachers’ salaries. Efforts to improve the salary of elementary and middle schools teachers upon the teacher’s wage index as a reference will help to reduce the supply and demand of extracurricular tutoring in the basic education in China, and will also facilitate the implementation of the policy of prohibiting in-service teachers from participating in extracurricular tutoring.

Italy and the little divergence in wages and prices: evidence from stable employment in rural areas†

AbstractThis article presents an early modern wage index for stable rural male workers in the Grand Duchy of Tuscany. These wages highlight the importance of distinguishing between locations and contract types when considering historical workers’ living standards, and they speak to a longstanding debate about whether Italy's early modern downturn was purely an urban phenomenon, or an all‐embracing one. Our data lend support to the former view, since we do not detect any downturn in our early modern rural wages. This observation informs the little divergence debate. By comparing rural rather than urban wages and stable rather than casual ones, we find that annual English earnings rose from being only 10 per cent higher than those in Italy in 1650 to being a staggering 150 per cent higher in 1800. If wages reflected labour productivity, then unskilled English workers—unlike their Italian counterparts—grew increasingly productive in the run‐up to the industrial revolution.

2020 RUSYA ANAYASA DEĞİŞİKLİĞİ: SOSYAL DEVLET Mİ EBEDİYEN PUTİN Mİ?

The year of 2020 was to become a triumph year for Putin. His 20th anniversary would be marked by the amendments to the Constitution and the 75th anniversary of the Soviets’ Victory in the World War II. This article seeks to examine 2020 Constitutional amendments in the Russian Federation that were proposed by Putin in January 2020 and that would secure Putin’s power till 2036. The author argues that in order to stay in power after 2024 election, Putin had to propose significant social guarantees to the Russian people. Direct changes in the balance of powers and presidential terms would be impossible due to the declining ratings of support for the president and government. Therefore, provisions about maternity payments, indexation of pensions and minimal wage were presented before the changes to the political system of the country. Besides, Russians have little knowledge about political system and abovementioned basic promises would look more attractive. Case study, utilized in this article, includes analysis of Putin’s speeches regarding amendments to 1993 Russian Constitution, corresponding presidential bill, legislation related to the issues introduced to the Constitution in 2020 and media coverage of those. It was complemented by the examination of the factors that led to the concrete provisions in the text as well as their outcomes for the society.

Criminal liability for infection with coronavirus SARS-COV-2 (COVID-19) in Ukraine and some foreign countries from the perspective of economic parity

The article defines the criminal liability for infection with the SARS-COV-2 virus (COVID-19) in Ukraine and some foreign countries. It is proved that there are various forms of committing an unlawful act for actions related to putting COVID-19 coronavirus infection at risk of infection. The article analyzes the criminal liability in Ukraine and the world for putting the coronavirus infection at risk for economic solvency parity based on the average monthly wage index in the country. It is proposed to bring the level of penalties in Ukraine to the average among other countries.

An Empirical Study on the Change of Consumption Level of Chinese Residents

With the rapid development of Chinese economy since the reform and opening up, people's living standards have been improved, and people's consumption level has been gradually improved. Consumption plays an important role in stimulating economic growth. At present, China needs to adjust its economic structure and optimize its industrial structure. Therefore, it is very important to analyze the factors that affect the consumption level of Chinese residents and study the main factors for promoting the healthy and sustainable development of Chinese economy. Therefore, based on the statistical data from 1995 to 2018, this paper collects the variable data that affects the consumption level of residents, such as the freight volume of infrastructure railway and highway, the per capita disposable income of national residents, ordinary college students, the consumer price index of residents, the average real wage index and the gross domestic product. And through the establishment of multiple linear regression model and the stepwise regression, the paper also finds out the main factors influencing the consumption level of residents. Using R language and analyzing the results of the research, we can draw the conclusion that the national per capita disposable income, ordinary college students and consumer price index and GDP are the main factors that affect the consumption level of Chine.

Analisis pengaruh upah minimum provinsi, kemiskinan dan indeks pembangunan manusia terhadap tingkat partisipasi angkatan kerja di Provinsi Jambi

This study aims to analyze the development of labor force participation rate in Jambi province, minimum wages, poverty, and human development index in and to analyze the influence of minimum wage, poverty, and human development index on labor force participation rate in Jambi province from 2002 to 2017 using multiple linear regression tools and the analysis method used is a descriptive and quantitative analysis using secondary data. based on the results of the study showed the development of the provincial minimum wage has increased every year, while poverty, human development index, and labor force participation rate in Jambi province fluctuated from 2002 -2017. and based on the test results simultaneously the minimum wage province, human development index poverty has a significant effect on the level of labor participation in Jambi province, while the partial test results are known that the minimum wage variable of the human development index has a negative and significant effect on the labor force participation rate in Jambi province. Keywords : Labor for participation rate, provincial minimum wage, pover, Human development index

K-Means Clustering Analysis pada PersebaranTingkat Pengangguran Kabupaten/Kota di Sulawesi Selatan

This study aims to determine the distribution of districts in South Sulawesi based on unemployment rate using clustering analysis. The unemployment rate indicators are districts minimum wage (UMK) and human development index growth rate (IPM). The algorithm used in this study is k-means clustering. The results of k-means clustering analysis showed that of 24 districts in South Sulawesi are divided into two clusters, namely the high and low unemployment rate. The high employment rate cluster consists of 6 districts, namely Pangkep, Sidrap, Luwu Timur, Palopo, Parepare, and Makassar. The rest, 18 districts are in the low employment rate cluster.

Analysis of the high order ADL(&lt;i&gt;p, q&lt;/i&gt;) models used to describe connections between time series

In the paper the mathematical models describing connection between two time series are researched. At first each of them is investigated separately, and the ARIMA(p, d, q) model is constructed. These models are based on the time series characteristics obtained during the analysis stage. The connection between two time series is confirmed with the aid of cointegration statistical tests. Then the mathematical model of the connection between series is constructed. The ADL(p, q) model describes this dependence. It’s shown that for the time series under investigation the ordersp, qof the ADL(p, q) model are connected with the ARIMA(p, d, q) orders of the describing each series separately. This step makes the set of the investigated ADL(p, q) models much smaller. In the previous papers it was also shown that the ARIMA(p, d, q) automatical fitting functions in popular packages use limitations on thep,qorders of the time series process:q≤ 5,p≤ 5. The wish to use the simplest models is also built in the structure of the Akaike (AIC) and Bayes (BIC) informational criteria. In the paper the maximal values of the ADL(p, q) model orders are supposed to be the orders of the appropriate ARIMA(p, d, q) series. In the previous work it was shown that using high order ARIMA(p, d, q) it is possible to fit the models better. In this paper the experiments on the ADL(p, q) models construction are presented. The wage index and money income index time series pair is researched, and also the gas, water and energy production and consumption index/real agricultural production index pair is investigated. The data in the 2000–2018 time period is taken from the dynamic series of macroeconomic statistics of the Russian Federation.