Share Of Labor Costs Research Articles

The Role of the Intellectual Potential of Employees in Creating the Goodwill of a Teaching Hospital

Hospitals are medical entities providing health services to patients. The dominant share of labour costs in the cost structure of the healthcare entity is evidence of the critical role of employees in a hospital's activities. Specialized medical staff provide medical services and educate future medical staff, while also conducting clinical trials and supporting the development of medical technologies. The article aims to recognize the impact of the intellectual potential of employees on creating goodwill in a teaching hospital. The inference was made based on the financial data available on hospital employees' income and labour costs as factors in the development of the goodwill of a teaching hospital. The following research questions were posed: whether the existing legal regulations regarding the financing of the activities of teaching hospitals in Poland, including the costs of medical staff, are conducive to the creation and development of goodwill of teaching hospitals; whether the ratio of the value of operating revenues to labour costs can be considered as a determinant of the increase in the goodwill of a teaching hospital. The research was conducted based on reporting data for 2018 - 2019 involving selected teaching hospitals as the basic units associating high-class medical specialists. The research was empirical and based on quantitative and qualitative data. The analyses were of an expert nature, from the perspective of a statutory auditor and a long-term researcher of the problems of the functioning of medical entities - hospitals. The preliminary findings indicate that the intellectual capital of teaching hospitals is crucial in creating and developing the goodwill measured by the ratio of the value of operating revenues to labour costs. The considerations undertaken in the article are an essential voice in recognizing the conditions for developing hospitals as entities with intellectual capital that is helpful in solving health problems on an international scale. The article is a continuation of the author's research on the development of intellectual capital of employees of teaching hospitals in Poland.

PROSPECTS FOR THE DEVELOPMENT OF THE DIGITAL ECONOMY IN THE GLOBAL SPACE

The era of active development of digital technologies has significantly changed the lives of people, conditions for doing business, the work of government bodies. Starting from the last decades of the twentieth century. Тhe term digital economy appeared and is actively used in scientific circulation mickey. During this period, there was a breakthrough in the field of digital technologies, the development of the Internet and related services, which led to the digitalization of various spheres of life sti. Digitalization processes are global in nature, and their pace is increasing year by year. Because digital technologies can connect and connect people and businesses directly and across national borders, old approaches to regional economic integration may not be feasible in the near future. Humanity is now entering one of the most important periods in its history. The industrial era relied on expanded reproduction and the involvement of all available resources in the economic circulation. But this stage of development of the world economy is coming to an end. Until recently, industry required the creation of gigantic enterprises and social structures in order to take full advantage of economies of scale. Mass character, standardization, interchangeability became the hallmarks of the second half of the 20th century. In this situation, the importance of technology increases. Possession of high technologies, especially leadership in them, means a strategic advantage in the modern world. New advanced production technologies, for example, robotics, 3D printing, significantly reduce the share of labor costs in total costs, making it expedient to return some of the foreign production facilities of multinational companies to the parent jurisdiction or to neighboring states.The process of digital transformation of the world economy is uneven and various countries of the world are affected to varying degrees. As the world becomes more and more decentralized politically and economically, consumers, services, processes and businesses continue to be digitally integrated. The simultaneous growth of digital integration and economic nationalism is transforming the economic, political and business environment, creating a completely new model for the development of the world economy, which, in particular, is characterized by a slowdown in the dynamics of international trade in traditional goods and services, as opposed to information and IT services.

6대 과일 수출 결정요인 분석

This study identifies export determinants by constructing panel data related to the export of the six major fruits(apples, pears, peaches, grapes, tangerines, sweet persimmons) from 2005 to 2020. To this end, an export equation with export volume by fruit as a dependent variable is set, and recent fruit supply and trade conditions are included in the explanatory variable as the previous studies. As a result of empirical analysis through the fixed-effect model, the relative prices(wholesale price / export price), production, GDP per capita in the exporting country, number of exporting countries, labor cost share, and distribution margin rate have significant impacts on fruit exports. Based on these analysis results, strategies and measures to enhance the export competitiveness of six major fruits are presented. More FTAs to be signed in the future could be an opportunity to increase exports of Korean fruits. In addition, it is important to improve export competitiveness because an increase in fruit exports can lead to an increase in the income of fruit farmers. Therefore, specific empirical research and effective policy support should be continued.

Cost behavior in e-commerce firms

We conduct empirical research on the flexibility of operating costs of e-commerce firms. With an international sample of firms from different European countries, we find that e-commerce firms have a different cost structure than traditional retail firms, with a lower share of labor costs and cost of goods sold, but a higher share of other operating costs. While we find no significant different behavior in cost of goods sold and labor costs between the two types of firms, e-commerce firms are more flexible in adjusting other operating costs than traditional retail firms when activity decreases. Results are robust to different models, estimations methods and samples. The higher flexibility of e-commerce firms relies on other operating costs, but e-commerce creates qualified jobs with higher wages than traditional retail, with no additional exposure to labor uncertainty for employees.

Shielding firm value: Employment protection and process innovation

Following state-level legal changes that increase labor dismissal costs, firms increase their innovation in new processes that facilitate the adoption of cost-saving production methods, especially in industries with a large share of labor costs in total costs. Firms with high innovation ability exhibit larger increases in process innovation and capital-labor ratios, an effect driven by both increases in capital investment and decreases in employment. By facilitating the adjustment of the input mix when conditions in input markets change, innovation ability allows firms to mitigate value losses and is a key driver of their performance.

Аnаlysis of Potеntiаl, Struсturе, Dynаmiсs of Dеvеlopmеnt of Kаzаkhstаn’s Sсiеnсе

This article analyzes the scientific potential, its structure, and dynamics of development in Kazakhstan to develop strategic recommendations for the further development of science. The main purpose of the scientific work is to obtain accurate data on the state of the dynamics of the development of Kazakh science. The main research methods were generalization, systematization, and the economic and statistical method. The statistical base of the study was the data of the Statistics Committee of the Ministry of National Economy of the Republic of Kazakhstan for the period from 2010 to 2020. According to the analysis, it was revealed that the state budget plays the main role in the financing of R&D in the republic, and the priority direction of R&D is research in the field of engineering developments and technologies. While there are several problems in the field of social sciences and humanities in Kazakhstan: the tendency to reduce the sphere of social sciences, a low proportion of highly qualified personnel in the humanities, a low material and technical base of social and humanitarian research, which is manifested in a high share of labor costs. Positive trends in the growth of costs for R&D, the development of the entrepreneurial sector of science, as well as negative trends in reducing costs for medical sciences were revealed. It is shown that there is a critical situation with the reproduction of scientific personnel, especially highly qualified personnel. The results of the study may be of interest to government authorities in the field of science.

Labour productivity in the sustainable development of wood-based industry: A case for the European Union countries

Labour productivity is one of the key factors determining the wood-based industry development and competitiveness. This study assessed the importance of human resources and labour productivity in the furniture sector in the European Union (EU) countries. A cluster analysis and multivariate linear ordering analysis were conducted. The EU15, especially Germany, Denmark, and United Kingdom, demonstrate a higher labour productivity and offer even four-fold higher wages to the employees than some EU13 countries. It results in a relatively high share of labour costs in the production. However, in some countries of Central and Eastern Europe, the importance of furniture production for the national economy and the job market was high. To maintain the sustainable development of the EU market, decreasing the regional differences is essential. Additionally, the existing competitive advantage of selected EU13 countries resulting from relatively low labour costs can be insufficient to maintain the current rate of production growth and furniture exports. The results of the study provide a precious source of information for entrepreneurs, managers, and government. They will help the production enterprises identify the areas to be made more efficient by taking important decisions to enhance competitiveness and design the future path of sustainable furniture sector development.

EMPLOYMENT AND REMUNERATION OF PHYSICIANS COMPARED TO THE HEALTH INSURANCE SYSTEM IN THE USA

The last decade has brought a sharp rise in healthcare costs in the US. This was not accompanied by an improvement in the indicators of the quality of healthcare. The health care system in the US, based in the same amount on private insurance as public funding, proved to be ineffective. This fact is mainly attributed to the growing costs of administering the complex system and high prices of medicines. And although the share of labor costs, including the remuneration of doctors in general health care expenditures, is relatively small (20%), there is an urgent need to look for pro-efficiency solutions also in this area. However, they must be accompanied by fuses that ensure adequate quality of health services and their availability. The article presents the mechanisms of employing doctors and their remuneration as an important element of systemic solutions in health care in the USA. It also features some characteristics of the pay relation. The article uses mainly secondary sources, including OECD statistical data. The results of reports published in American literature by various bodies and institutions, including Medscape and Doximity – the most popular American portals associating doctors, were also used. The information collected during unstructured interviews with participants of the health care system (doctors, hospital directors) during their stay in the USA was used as auxiliary.

СРАВНЕНИЕ ОБЪЕМОВ РАБОТ ПО ТЕХНИЧЕСКОМУ ОБСЛУЖИВАНИЮ УЧАСТКОВ ТРАМВАЙНОГО ПУТИ НА РАЗЛИЧНЫХ ЭТАПАХ ЖИЗНЕННОГО ЦИКЛА

The paper presents the assessment of technical condition of track on the example of two tram sections on Titov and Svyazistov streets in Novosibirsk. The authors have compared sections by the number of derailments and have revealed the main reasons of the derailments. As a result, they have established the volumes of maintenance of tram tracks and the required labour costs, as well as the works that make the main share of labour costs for 5 years on both considered sections. In order to control the track position for the provision of comfortable and safe transportation of passengers the authors recommend to use a track measuring truck.

IMPROVEMENT OF WAGE SYSTEM IN HEALTH CARE AS A FACTOR IN INCREASING THE ECONOMIC SECURITY OF THE REGION

The article considers the problems in regional healthcare wage system. It is found that the persistent imbalance between income and expenses formed against the background of increased funding of the public health. It is noted that the main item of expense of medical organizations is the wage fund, which remains understudied.
 The high share of labor costs, low level of wages in the industry compared to neighboring entities, wage differentials, erratical wage framework and low share of the guaranteed part of wages, overloading of the wage system and low level of automation of information systems are highlighted as major issues. At the same time, in the author’s view, the healthcare wage system that meets modern requirements is the key to the economic and social security of the region and the state.
 The regional healthcare wage system needs to develop new approaches. According to the author, it is required to build a wage system according to a hierarchical type, depending on the level of the medical organization, based on the central place theory and the development of inter-municipal cooperation.
 The analysis is based on statistical and analytical data for the last 5 years, as well as methods of dynamic and structural analysis, measuring the achievement of targets and integrated approach.

Wage of employees in the agricultural sector: modern socio-economic and accounting aspects

Introduction. Many socio-economic problems are characteristic of the agricultural sector, the main of which are: mi-gration of rural population, low income and quality of life of rural residents, lack of social infrastructure of the village, re-ducing the prestige of agricultural work for young professionals. Increasing the level of remuneration and income of the hired personnel of agrarian business entities is a prerequisite for solving such modern problems. The purpose of the research is identification and analysis of modern socio-economic trends and problems of account-ing and analytical support in the field of remuneration of personnel of agrarian enterprises. Results. A wage is one of the most important indicators of the level of socio-economic development of industries and regions. In the agrarian sector wage is traditionally one of the lowest among all sectors of the national economy. The share of wages of agricultural personnel is about 68% of the national average (UAH 7166). The range of wages in the industry by region is significant: the highest is in Ivano-Frankivsk and Kyiv and the lowest is in Odessa and Zaporizhye region. In the structure of agricultural production costs, the share of labor costs does not exceed 5-8%. The minimum wage in Ukraine is 58% of the lowest in the European Union. The main problematic aspects of modern payroll accounting are: the practice of accounting for costs associated with agri-social responsibility programs, the lack of common practice of actuarial valuation methods, discounting the cost of future personnel costs, the imperfection of accounting policies, the order of accounting of the costs associated with the effec-tive mechanisms of agrarian labor stimulation, the limited forms of financial and statistical reporting financial indicators of employment. Conclusions. Implementation of the results showed that the time required to pay the most hired to the personnel of the agrarian sector of Ukraine is significantly lower than the other types of economic practice and foreign practice. The main problematic socio-economic aspects of wages in the industry were identified: tendencies of regional agrarian labor markets, low social standards, low share of wage costs in their general structure, limited size of enterprises slow wage growth in the industry, lack of mechanisms incentives for work in most small agribusinesses. Further improvement of payroll accounting should occur as an informational and analytical supplement to agronomy management in the context of the implementation of modern value management concepts with a focus on human capital. Keywords: wages, salaries, staff, agriculture, cost accounting, calculations with employees, analytical support, agri-cultural enterprises.

Embedded Technology and Economic Growth

It is shown in the present paper that embedded technology leads to higher economic growth. In other words, if the share of labor cost in value added is decreased then economic growth increases. It should be noted however that a decline in the share of labor cost in value added does not necessarily imply that the nominal wage is decreased, but instead it means that higher portion of technology is embedded in the value added. Statistics have shown that an increase in nominal labor costs is not the reason for a slow economic recovery, but the share of labor costs in the value added, which is the crux of the present article.

Impact of Income Distribution on Social and Economic Well-Being of the State

Income distribution can cause large-scale transformations in human resources structure, essential changes of economic outputs via its impact on life satisfaction and motivation of work. Thus, the overall objective of this research is to improve methodological tools of income distribution analysis based on identifying the links between different structural indicators of income inequality and the most essential features of social and economic well-being. We conducted comparative analysis of EU Member States and Ukraine. We used structural analysis based on two forms of income distribution—functional (share of “labour” in Gross domestic product - GDP) and household one (ratio of incomes measured by special decile coefficients) to identify income inequality and inconsistencies in distributive strategies. By grouping European countries according to economic well-being (described as GDP per capita) and inequality in income distribution (based on Gini coefficient), we determined apparent tendencies in distributive policies and revealed links between income distribution and connected social-economic features of well-being. We conclude that countries with the most stable and clear patterns in income distribution have distinct connections between the share of labour costs in GDP and successes in social and economic spheres, including human development level, property rights protection, GDP growth, possibilities for taxation and budgeting of social programmes.

INDUSTRY OF RIVNE REGION: CURRENT STATE AND STRATEGIC TARGETS OF DEVELOPMENT

Topicality. Increasing attention to the development of industry and industrial policy is one of the main tendencies in the development of the modern world global economy. Wide recognition of the important role of industry in solving current problems has been reflected in new challenges for rapid development of the domestic industry. It is a generator of scientific and technological progress and innovation and an important factor in the competitiveness of national economies and it serves as a driver for economic growth. Purpose and tasks. The purpose of the article is to identify the situation, problems and prospects of industry development in the Rivne region. Results. It is established the leading role in the economy of Rivne Oblast is famous for industry and agriculture. It was revealed the leading industries of the Rivne region including production and supply of electricity and gas; Chemical Industry; manufacture of building materials and glassware; Food Industry; manufacture of wood products; engineering. The results of the research on the development of industry in the Rivne region, problems and tasks of its development, SWOT-analysis of the strengths and weaknesses of industry in the Rivne region, opportunities and threats of its development are presented. The primary directions of industry development in the Rivne region have been formed. In particular, modernization of production; introduction of energy-saving technologies; promotion of production of industrial products, competitive in the domestic and foreign markets; an increase in the total volume of foreign direct investment attracted to the regional economy; establishing cooperation with international companies; regulation of the legislative framework on consumer rights protection, advertising, unfair competition, registration of patents and inventions, registration and protection of trademark rights for goods and services.Conclusions. The following problems of the regional industry must be considered and urgently addressed: moral and physical depreciation of fixed assets, high dependence on world market conditions, high energy intensity of production, production of products with low added value, etc. Instead, key drivers need to become its competitive advantages as a strong raw material base, advantageous geographic position, close proximity to the EU markets, a relatively low share of labor costs in the structure of the cost of industrial products, and a significant unrealized potential of domestic demand for industrial products.

THE INFLUENCE OF SMALL BUSINESS SPREADING ON THE DYNAMICS OF THE LABOR COSTS SHARE IN VALUE ADDED GENERATED BY LEADING INDUSTRIES OF UKRAINIAN ECONOMY

The article is devoted to empirical testing of two initial hypotheses. The first is that the small business spreading in the Ukrainian economy would contribute to changing conditions of factor incomes distribution in favor of hired workers. The second is exactly such changes in the distribution of factor incomes (which is expressed by increasing in the share of labor costs in gross value added generated by leading types of economic activity) will contribute to the social efficiency increasing of economic activity.The processes of implementation of the potential of small business to mitigate the negative social consequences of the deterioration of the macroeconomic situation are researched in the article. The contribution of small business to the dynamics of the share of wages in the value added by main types of economic activity was determined and the compliance of the specified contribution to the potential of a small business to improve the realization of the interests of hired workers in the relations of factor incomes’ primary distribution was assessed.The method of "weighted differences" was used for quantitative estimation of the structural shifts impact on the aggregate for both sectors of large and small business indicators. The mentioned method was transformed according to the author's technique in order to include in the calculations the value of a qualitative indicator by the reporting period against the base period. This allows us to assess the contribution of qualitative changes, occurring in the small and large business sectors, to the dynamics of the average characteristics of the factor incomes distribution, inherent to the leading types of economic activity in the Ukrainian economy.The obtained results did not confirm the first hypothesis and allowed to substantiate the conclusion that the spreading of small business by itself (which is not accompanied by qualitative changes in the role of human resources and improvement of conditions for its reproduction) does not allow to expect the improving conditions of employees’ access to the main source of qualification, professional and social mobility – high labor income.

Shielding Firm Value: Employment Protection and Process Innovation

Following state-level legal changes that increase labor dismissal costs, firms increase their innovation in new processes that facilitate the adoption of cost-saving production methods, especially in industries with a large share of labor costs in total costs. Firms with high innovation ability exhibit larger increases in process innovation and capital labor ratios—an effect driven by both increases in capital investment and decreases in employment. By facilitating the adjustment of the input mix when conditions in input markets change, innovation ability allows firms to mitigate value losses and is a key driver of their performance.

INVESTMENTS IN WORKPLACE ERGONOMICS FROM THE SUPPLY CHAIN APPROACH

In Europe, the number of people aged 65 and older is growing from 85 million today to more than 151 million in 2060. Therefore, the retirement age of industrial workers is rising. However, many workers are not able to work until they have reached the increased retirement age 70. Often, they are producing fewer products with lower quality. Delays and disruptions in one activity cell of a supply chain can have a ripple effect throughout entire chain. In the article, we are investigating how investment in robots could influence Net Present Value (NPV) of a supply chain. The model is based on the Extended MRP skeleton. The investments in robots are analysed as a share of labour costs which enable decision-makers to trade-off between NPV decrease and the collaborative robots. The trade-off between higher investments in ergonomics and lower NPV is considered. Based on an Italian working environment a numerical application of the model is provided.

Optimization of the innovative design products’ cost

The authors have suggested a block diagram on calculation of cost of design products, based on the utilization of analysis of the actual costs of design organization. The key blocks of the proposed calculation are the identification of duration of design procedures and analysis of the actual cost of the design organizations. The authors have performed analysis of the structure of the cost value of design products in the organizations representing the city of Irkutsk having divided them into the four following groups: large, medium, small and micro- organizations. Based on that, they have defined a share of labor costs in value of innovative design products. Data of accounting of design institutions of Irkutsk for 2015-2017 became a basis for the economic and statistical analysis. The calculated indicator of the share of labor costs in the cost value will constitute a reliable approach for identification of the cost of the design work when developing innovative design products.

Corporate Cost and Profit Shares in the Euro Area and the US: The Same Story?

This paper presents evidence of how the shares of labour and capital costs and profits in the gross value added of corporate sectors of France, Germany, Italy, Spain and the US varied between 1995 and 2016, and seeks to explain the differences between countries and how they have developed over time. The descriptive evidence does not support the hypothesis of a convergence in the composition of the countries’ corporate gross value added in the period, either within the euro area or between Europe and the US, nor is there evidence of a generalised downward trend in the share of labour costs over time. The parallel upward trend in the corporate profit share of the US and Germany between 2000 and 2016 stands out, with German corporate profit share consistently above that of the US. The evidence presented here supports the claim made by other studies that increasing corporate market power is the main driver of changes in the composition of gross value added over time in the case of the US. In the euro area countries, labour and capital shares are also sensitive to changes in the relative input prices of labour and capital (consistent with an inferred elasticity of substitution between labour and capital in production that is less than one, compared with the inferred value of one for the US). Finally, to explain the high and increasing German corporate profit share, it is necessary to account for the sustained comparative production cost advantage of German corporations.

Effects of Credit Supply on Unemployment and Income Inequality

The Great Recession, which was preceded by the Financial Crisis, resulted in higher unemployment and income inequality. We propose a simple model where firms producing varieties face labor-market frictions and credit constraints. In the model, tighter credit leads to lower output, a lower number of vacancies, and higher directed-search unemployment. If workers are more productive at higher levels of firm output, then a lower credit supply increases firm capital intensity, raises income inequality by increasing the rental of capital relative to the wage, and has an ambiguous effect on welfare. With an initially high share of labor costs in total production costs, tighter credit lowers welfare. This pattern reverses during an expansionary phase when there is higher credit availability.