Wage Levels Research Articles

Poverty Alleviation in the Local Economy to Achieve Sustainable Development Goals

Objective: This paper examines the strategies of poverty alleviation based on data from the regions in the Daerah Istimewa Yogyakarta province, Indonesia, to achieve the Sustainable Development Goals category of No Poverty (SDGS 1). Theoretical Framework: This study applies the multidimensional poverty theory, explaining that poverty depends on many factors. This research proposes that the determinants of poverty rate are economic growth, wage level, unemployment, human resources quality, and government spending. Method: This study estimates a poverty model based on panel data of regencies from 2014 to 2023. The estimation follows the standard procedure of the panel regression analysis. Results and Discussion: The results show that this region's poverty rate relates to economic growth, minimum wage, human resource quality, and local government spending. The research finds that local governments have successfully alleviated poverty by maintaining the minimum wage policy, effective human resource development programs, and allocating their spending to lower poverty. This study highlights that local governments are on the right path in their public policies regarding poverty alleviation. Research Implications: To alleviate poverty more effectively, regency governments should continue the minimum wage policy and manage their spending correctly to improve the quality of human resources. Originality/Value: The originality of this study lies in poverty alleviation strategies based on the case of regencies. Other local governments across countries may refer to this finding in their poverty alleviation programs.

Analysis of Determinants of Labor Force Participation Rate in West Nusa Tenggara Province in 2013-2022

This study aims to analyze the influence of Economic Growth, Minimum Wage, and Education Level on the Labor Force Participation Rate in West Nusa Tenggara Province in 2013-2022. The population in this study is the entire working-age population which is the labor force in West Nusa Tenggara Province. The method used in this study is a quantitative method using secondary data, the analysis technique used is multiple linear regression in the form of panel data. The data was processed using Eviews12 and the tests carried out were the Goodness Of Fit Test, Partial Test (Test T), Simultaneous Test (Test F). The results of the study show Economic Growth (X1) with a probability of 0.2536 > 0.5 which means that the Economic Growth variable does not have a significant effect on the Labor Force Participation Rate in NTB Province in 2013-2022. Furthermore, the Minimum Wage variable (X2) shows a probability value of 0.9316 > 0.5 which means that the Minimum Wage variable does not have a significant effect on the Labor Force Participation Rate in NTB Province in 2013-2022. The Education Level variable (X3) with a probabolity of 0.0000 < 0.5 shows that the Education Level variable has a significant effect on the Labor Force Participation Rate in NTB Province in 2013-2022. The results of the F test with a probability of 0.000000 show that Economic Growth, Minimum Wage, and Education Level simultaneously have a significant effect on the Labor Force Participation Rate (Y) in NTB Province.

ECONOMIC VALUE OF UNPAID FAMILY CAREGIVER TIME FOLLOWING HOSPITAL DISCHARGE AND AT END-OF-LIFE

Abstract Estimates of patient care costs often overlook the economic value of unpaid caregiving. This study aims to quantify the economic value of unpaid caregiving by rural FCGs. Using data from a multi-site randomized controlled trial evaluating Transitional Palliative Care (TPC) intervention for FCGs, this study quantifies the economic value of family caregiving in the six months following seriously ill care recipients’ hospital discharge using three valuation methods. Caregiving hours were self-reported by FCGs. The proxy cost approach assigned value to FCG hours using the national median home health aide wage. The unadjusted opportunity cost approach assigned value using the national median wage, by sex and education level. The adjusted opportunity cost approach assigned value by work force participation, using opportunity cost if employed and proxy cost otherwise. Of 282 FCGs, 94% were non-Hispanic White, 71% had a college degree, 56% were spouses, and 51% were in the workforce. FCG cost did not differ by treatment arm. FCGs of decedents compared to survivors reported significantly more hours per person-month (392 vs. 272, p< 0.001), resulting in higher median opportunity cost ($12,653 vs. $8,843, p< 0.001), proxy cost ($5,689 vs. $3,955, p< 0.001), and adjusted opportunity cost ($9,490 vs. $6,443, p< 0.001) per person-month. Proxy cost may undervalue FCG time, while opportunity cost may perpetuate labor market inequities. Policymakers must weigh trade-offs of different valuation methods. The high intensity of unpaid post-acute care, especially end-of-life, should be considered when designing policies and interventions to support unpaid FCG due to the economic impact on FCGs and employers.

In-kind Wages: Understanding Workers’ Strategies to Cope with Inflation and Poverty

Abstract Although non-monetary benefits remain an important component of most workers’ wages in today's industrial economies, development economists and economic historians tend to view such payments as a remnant of older, obsolete labour regimes. But when in-kind wages are assumed to be exploitative, an outcome of market inefficiencies, or simply the result of limited supply of coinage, their actual economic functions can be obscured. Once we drop the constraints imposed by such assumptions and look at the historical evidence, we are forced to confront the possibility that workers actually used them to their advantage. In this article, I analyse how in-kind wages functioned in certain historical contexts, and conclude that available explanations are far too limited. As the historical cases studied show, the different forms of in-kind payments must be examined because those forms – not just overall wage levels – helped determine labour supply, social and occupational mobility, and even capital formation. The goods and services that made up in-kind payments also provide a fuller understanding of gender wage gaps. Non-monetary wages gave workers options that cash wages did not, and so created and reproduced fundamental inequalities among different groups.

Prospects for the development of the potential of the Russian Arctic: motivational drivers of labor migrants (based on the example of shift employment)

The article updates the topic of developing the labor potential of the Russian Arctic. The ideas and motives of shift workers about this type of work in labor-scarce regions and its inconsistency from the point of view of advantages and negative consequences for both the individual and the region are analyzed. The purpose of the article is to identify a number of attitudes and ideas of shift workers as temporary labor migrants about their employment and work activities in order to determine the drivers for the development of the labor potential of the Russian Arctic. The following intangible determinants of the choice of employment on a rotational basis in a harsh climatic region were analyzed: motivation, satisfaction with the characteristics of the labor market, reflection of personal qualities and values, underlying the decision on regular temporary migration. The study was conducted among employed people coming to work in the Arctic zone of Russia from non-Arctic regions of the Russian Federation. The empirical basis of the study is based on a survey of 850 shift workers and interviews with 13 informants. When processing quantitative data, simple distributions, contingency tables and statistical methods were used. Qualitative data processing methods: content analysis and thematic analysis. The results of the study showed that rotational workers are motivated by the relationship between the level of wages and the cost of living in the region of permanent residence. Informants note an alignment with salaries “on the mainland” but the commitment to shift work remains due to its lack of alternative in terms of the ratio of advantages and limitations. For shift workers, the value of wages, professional development and the reliability of the employing company is significant. Self-assessment of personal qualities that determine the choice of work in hard-to-reach places is associated by shift workers with openness to new experience, stress resistance and communication skills. A direct correlation was revealed between the experience of rotational employment and the unwillingness to move to the Arctic zone of the Russian Federation for permanent residence. The results justify the need to take into account the volume of shift employment when preparing a personnel forecast for labor-scarce regions, and will also be useful for the recruiting activities of personnel services of companies operating in the Arctic zone of the Russian Federation and using the rotational method of labor organization.

Reaping the Returns of a Runaway Economy

Over the past few decades, economic and maritime historians have shown growing interest in the wages earned by regular seamen in merchant shipping. Due to a lack of sources, however, the composition and size of these earnings remain an elusive topic, as are the economic, demographic, and political processes that shaped them. In this article, I conduct a micro-history of seamen’s earnings in Ostend’s merchant marine during the early 1780s, a period of commercial uptick in the principal port town of the Austrian Netherlands. I show how a confluence of wartime circumstances and domestic economic policies led to extraordinary wage levels. From a micro point of view, I show how individual seamen reaped the returns of this runaway port economy by successfully wrangling over wages and harnessing the mobility of their profession, both between and within ports. As such, this article provides a perspective on wage-formation from a neutral and small maritime power, as well as a novel history from below of Ostend’s boom years.

Pengaruh Pengangguran, Kemiskinan dan Indeks Pembangunan Manusia Terhadap Upah Minimum di Provinsi BantenTahun 2008-2023

During 2008-2023 , the Banten region experienced various social, monetary, and strategic changes that could affect the minimum wage level for the workforce. In this situation, it is important to distinguish the fundamental elements that affect the minium wage. such as unemployment, poverty, and Human Development Index (HDI).The purpose of this study is to determine how the influence of unemployment, poverty, and Human Development Index on the minimum wage in Banten province period 2008-2023. The Data used in this study is a time series data sourced from BPS Banten 2008-2023. This study uses the method of analysis of multiple linear regression using EVIEWS application. This study provides the results that unemployment (X1), poverty (X2) and Human Development Index (X3) simultaneously (together) significantly affect poverty (Y) in Banten province period 2008-2023.

Analysis of the level and dynamics of wages in agriculture

The article analyzes the dynamics of the ratio of the average monthly accrued wages of agricultural workers to wages in the economy as a whole over a long period of time, as a result of which four sub-periods were identified: the first — from 1959 to 1990, the second — from 1991 to 1999, the third — from 2000 to 2005, the fourth — from 2006 to the present, characterized by different trends. Despite the growth of nominal and real average monthly accrued wages of employees of organizations by the type of economic activity «Agriculture, forestry, hunting, fishing and fish farming», its level remains one of the lowest among all types of economic activity, which negatively affects the attractiveness of the agricultural sector for the employment of young people, university graduates and older workers. In addition, the gap in the average monthly accrued wages in agriculture with the highest paid type of economic activity «Financial and insurance activities» reaches threefold differences. Whereas in one of the most developed countries in Norway, which ranks second in the world in the human development index, this gap is 1,7 times. It was determined that the variation in wages by subjects of the Russian Federation is quite low and amounts to 28 %. It was also revealed that even in the leading regions producing the largest volumes of agricultural products (Krasnodar Krai and Rostov Oblast) among all regions of the country, the level of wages in agriculture is low and is at an average level, but at the same time in the Belgorod Region, which is distinguished by a high level of intensification and efficiency of production, ranking third in terms of agricultural production, wages are paid 27 % higher than the average level in the industry as a whole in all subjects of the Russian Federation, which indicates the possibility of increasing the level of wages in agriculture to a comparable level in other types of economic activity.

Determinants of Labor Migration to International Labor Markets: A Study of Sumatra Island

This research investigates the determinants of labor migration in Sumatera Island, focusing on per capita income, provincial minimum wage, unemployment, and education level using a panel data method with quantitative analysis. The study utilizes Labor Migration as the dependent variable and Per Capita Income, Provincial Minimum Wage, Unemployment, and Education Level as the independent variables. The research focuses on provinces across Sumatra Island, including Aceh, Riau, Bengkulu, Jambi, West Sumatra, North Sumatra, Lampung, South Sumatra, Riau Islands, and Bangka Belitung. The period selected in this study is from 2017 to 2021. The panel data regression model selected for analysis is the random effect model. The estimation results reveal that provincial minimum wages significantly influence Indonesian Labor Migration, while other variables show no significant impact. This finding is further supported by the observation that even in provinces with slightly higher minimum wages, such as Riau and West Sumatra, average wages may not ensure sufficient financial stability for individuals and their families. Consequently, the allure of higher wages in the international labor market becomes a compelling factor for many workers from Sumatra Island, driving them to seek employment opportunities overseas.

Regional and sectoral wage disparities as a reflection of inequality: The case of Kazakhstan

In today’s world, many countries, including Kazakhstan, are facing growing income inequality, poverty, and an increasing polarization of society. These challenges threaten social stability and make it difficult to achieve the Sustainable Development Goals. The purpose of this study is to investigate the size and trends of regional and sectoral wage disparities in Kazakhstan, as well as to create a typology based on the average wage levels in different regions and to provide recommendations for reducing income inequality. The study tested hypotheses about the relationship between the average nominal wage and the level of GRP, level of education, industry specialization, type of ownership, and size of enterprises. The methods of expert survey, correlation, and cluster analysis were used. The study revealed the tendency of increasing inequality of labor income. The largest differences between wages in extractive industries and agriculture were revealed in the Atyrau (11.5) and Mangystau (9.2) regions and Astana (7.2). Differences in average wages between regions were estimated at 1.7 to 7.8 times. The most significant factors affecting the level of average wages are gross regional product per capita and the share of gross value added of the quasi-public sector in the gross regional product. In order to reduce differences in wages, it is recommended to introduce progressive taxation, apply regional increasing coefficients, and calculate the minimum wage based on the hourly wage rate. AcknowledgmentThis work is supported by the Committee of Science Ministry of Science and Higher Education of the Republic of Kazakhstan (Grant BR21882165).

Improving the image of the state civil service for young people using the example of executive authorities of the Kursk region

The relevance of this research topic is due to the fact that the state civil service in executive authorities is the most important institution of modern society, ensuring the effective functioning of the state apparatus and the implementation of state policy. Attracting young talented specialists to the civil service is a key factor in increasing its efficiency and prestige. However, at present there are a number of problems arising from the current evolution, including low wages, lack of career prospects, and a negative image of civil servants of executive authorities in society.The purpose is develop a roadmap to improve the image of the state civil service of the executive authorities of the Kursk region for young people. Objectives: conduct a survey among current young civil servants of the executive authorities of the Kursk region and students of universities of the Kursk region, process the results obtained, develop a roadmap that includes measures aimed at ensuring a decent level of wages, developing a training program, attracting youth organizations, modern marketing and communications, increasing transparency and openness.Methodology. The methodological basis of the work was an interdisciplinary approach combining elements of sociology, psychology and marketing. Conducting sociological surveys among young people and current young civil servants of the executive authorities of the Kursk region. The following research methods were used: questionnaires, interviews, analysis, synthesis, comparison, generalization.Results. During the study, a survey was conducted among current young civil servants of the executive authorities of the Kursk region and students of universities of the Kursk region, the results were processed, and a roadmap was developed to improve the image of the state civil service of the executive authorities of the Kursk region for young people.Conclusion. Improving the image of the state civil service of the executive authorities of the Kursk region for young people is a key factor in attracting young talented specialists to the civil service and increasing its efficiency. To achieve this goal, it is necessary to implement a set of measures aimed at ensuring a decent level of wages, developing a training program, attracting youth organizations, modern marketing and communications, increasing transparency and openness. Only a systematic approach to solving this problem will increase the prestige of the civil service and attract the best personnel from among young people.

Absence of Strikes as a Criterion of Efficiency of Staff Security Costs Management at Industrial Enterprises

The article is devoted to studying the possibility of using the absence of strikes as a reliable criterion for measuring the efficiency of staff security cost management at industrial enterprises. The authors proved that the threat of losing a job due to an industrial downturn and economic instability creates conditions under which the interest of employees in protecting enterprises and their owners is higher than the benefits of initiating a labor dispute with them. Based on the results obtained, it is established that despite a low level of social standards in most Ukrainian enterprises, including wage arrears and a low wage level, the number of strikes in Ukraine is scanty. In 2018-2020, there was not a single strike in Ukraine. In 2021, 11 strikes were recorded in the field of education, with the total number of participants accounting for 700 people. Since 2022, strikes in Ukraine have been banned due to the martial law introduction. The article introduces the concept of “employees’ forced loyalty” and elaborates on the classification of loyalty types. The authors proposed the matrix for determining the situations, in which the absence of strikes is a criterion for the efficiency of staff security costs at Ukrainian industrial enterprises. It is grounded that the relationship between employees and employers in Ukraine can be described by the term “neo-feudalism”. The authors systematized the negative consequences of neo-feudalism for labor productivity and staff security. Having considered the results of the study, the authors proposed a list of measures aimed at minimizing and eliminating those consequences.

The Recession of America's New Economy — The Paradox of Low Unemployment and Stagnant Wage Growth in the United States

On September 18, the interest rate cut announced by the US Federal Reserve Board was the first interest rate cut since March 2020, and the industry generally analyzed that this will also open the curtain of the Fed's interest rate cut cycle. The Federal Reserve's practice of regulating monetary policy for its interests has improved the US economy. Still, the inhibitory effect of high interest rates on the economy is also emerging. The prolonged period of high interest rates has created a cost-of-living crisis for Americans, whose real standard of living is not as good as the economy looks. The pace of rate cuts is not expected to be as rapid as the pace of rate increases, which may have a contractionary effect on economic development in the United States and other economies. This article will start with the paradox between low unemployment and slow wage growth in the United States. The close relationship between inflation and wage levels is introduced. This analysis explores the factors contributing to the slow economic growth in the United States from various perspectives and offers predictions for the country's short- and long-term economic outlook. While domestic tensions are gradually easing in the short term, the long-term prospects for the U.S. economy appear less optimistic. This is due to enduring structural issues within the country, a significant decline in consumption levels, and external influences that continue to pose challenges to sustained growth.

An Empirical Analysis of the Impact of Financialisation on the Rate of Profit for the US (1955–2019)

ABSTRACTThe purpose of this article is to examine the relationship between financialisation and functional income distribution. To this end, we empirically analyse the relationship between financialisation, the real wage level and the rate of profit in the US (1955–2019) using structural vector autoregressive modelling. According to our results, while an increase in financialisation leads to changes in the rate of profit with ambiguous signs and unclear statistical significance, financialisation has a clear, negative and persistent effect on the real wage level. We conclude with a reconsideration of the role of financialisation in shaping functional income distribution, as it appears to contribute directly to restraining real wage levels rather than directly impacting profitability.

On the specifics of the development of social and labor relations in the Russian Federation in 2024

The article is based on research by the Labor Conflicts Center (St. Petersburg). The main and characteristic causes of social and labor conflicts in the most conflict-prone sectors of the economy in 2024 were: the general low level of wages of workers; violations of working conditions due to staff shortages, reduction (non-payment) of various bonuses and allowances (compensations).

Analysis of Subjective Factors Causing Unemployment in Pasuruan City

This research aims to determine the factors that cause unemployment based on the subjective opinions of unemployed people themselves, such as (1) the effect of education on unemployment, (2) the effect of employment opportunities on unemployment, (3) the effect of wage levels on unemployment; (4) the influence of interest in work on unemployment. The population used in this research is the unemployed in Pasuruan City. This quantitative research uses a questionnaire with the data used as primary data. The sampling technique in this research was purposive sampling, limited to 100 unemployed respondents. Hypothesis testing was carried out using the SEM-PLS method. The results of this study show that the factors causing unemployment are low education, lack of ability to be equipped with the skills needed by companies, limited job opportunities, and low wage levels. Meanwhile, interest in working does not affect unemployment.

Influence of Socioeconomic Factors on Wage Remuneration in Liberia Women Football

Women’s football has often experienced low wage remuneration compared to men’s, and research has primarily associated this disparity with gender inequality, however, this study explored other equally significant factors that contribute to low wage remuneration in women’s football. The study examined how economic and sociodemographic factors impact wages in women's football in Liberia. It explored and evaluated the influence of sociodemographic factors (family, media, years of experience, level of play) on the wage remuneration of female footballers in Liberia and how economic factors (income, employment) have influenced wage remuneration in women’s football in Liberia. The descriptive study design was employed for this research. Participants were given questionnaires to fill across various sociodemographic, and economic profiles to obtain information on women footballers in Liberia. The inferential statistical tools, Pearson’s Product Moment Correlation (PPMC), and Multiple regression techniques were used in analyzing the data to identify the relationships between sociodemographic and economic variables on wage remuneration. In this sample of 550 participants (100%female, predominant age range – 20-24 years), social factors such as media and family structure (β = -0.084, t = -2.043, P= 0.042), and sociodemographic factors such as years of experience and level of play (β = - 0.168, t = -4.117, P= 0.000) had significant influence on women's football wages in Liberia. However, Economic factors such as income, and employment (β = -0.008, t = -0.183, P= 0.855) did not contribute significantly to wage remuneration in women’s football in Liberia. Sociodemographic factors were significant determinants of wage remuneration in women's football in Liberia. Specifically, sociodemographic variables, such as media, family, years of experience, and level of play, were major determinants of remuneration and wage levels in women's football in Liberia.

Influence of household income on the development of small and medium-sized businesses: An international comparative analysis

This study was aimed at analysing the impact of household incomes on the development of small and medium-sized businesses (SMEs) on the example of Kyrgyzstan and developing recommendations for the implementation of international experience in the country. The research methodology included the collection and analysis of statistical data to estimate the average monthly nominal wage using the arithmetic mean. The method of economic and statistical analysis was used to compare wages in Kyrgyzstan with similar indicators in other countries using Wilcoxon t-test, and to analyse the economic performance of SMEs for the period 2017-2023. The study found that a high level of household income contributes to an increase in consumer demand and stimulates the development of SMEs through increased sales and investment. However, low household incomes have a negative impact on purchasing power and, consequently, on the sustainability and profitability of businesses. It has been found that household incomes play a decisive role in shaping the demand for goods and services, which directly affects the activity and growth of SMEs in the country. The wage level in Kyrgyzstan was found to be extremely low and significantly different from the average wage level in other countries. The study also identified the main challenges that hinder the successful development of SMEs in Kyrgyzstan, including a complex bureaucratic environment, insufficient financial support, high poverty levels, and a lack of investor protection. As a result, a set of recommendations was developed to improve the conditions for SME development in Kyrgyzstan. The implementation of these recommendations will create favourable conditions for the growth and development of SMEs in Kyrgyzstan, contributing to the country’s economic sustainability and social development

Analysis of Young Consumers' Consumption Behavior from the Perspective of Behavioral Economics

As the pace of economic development in China continues to accelerate and wage levels increase, more people are achieving financial prosperity, with young consumers displaying distinct consumption characteristics. Consequently, they have become a key focus of research for Chinese economists. National consumption, as an important component of Gross Domestic Product (GDP), is a crucial factor in promoting steady economic growth. Under the guidance of existing behavioral economics theories, consumer behavior, influenced by various psychological and environmental factors such as personal intentions and market conditions, can be categorized into two main patterns: rational consumption behavior and irrational consumption behavior. Therefore, analyzing young consumers' consumption behavior from an economic perspective is beneficial for the research and formulation of relevant economic policies in China. It also helps correct abnormal consumption behaviors, thereby promoting rational and scientific consumption.

Geospatial Analysis of the Association Between Medicaid Expansion, Minimum Wage Policies, and Alzheimer’s Disease Dementia Prevalence in the United States

Previous studies indicate that increased healthcare access through Medicaid expansion and alleviation of socioeconomic stressors via higher minimum wages improved health outcomes. This study investigates the spatial relationships between the Medicaid expansion, minimum wage policy, and Alzheimer’s Disease (AD) dementia prevalence across the US. We used county-level AD dementia prevalence adjusted for age, sex, race/ethnicity, and education. Social Vulnerability Index (SVI) data, Medicaid expansion status, and state minimum wage law status were incorporated from CDC, Kaiser Family Foundation, and US Department of Labor sources, respectively. We employed the Getis-Ord Gi* statistic to identify hotspots and cold spots of AD dementia prevalence at the county level. We compared these locations with the overall SVI scores using univariate analyses. We also assessed the proportion of hot and cold spots at the state level based on Medicaid expansion and minimum wage status using the logistic regression model. The most vulnerable SVI quartile (Q4) had the highest number of hotspots (n = 311, 64.8%), while the least vulnerable quartile (Q1) had the fewest hotspots (n = 22, 4.6%) (χ2 = 307.41, p < 0.01). States that adopted Medicaid expansion had a significantly lower proportion of hotspots compared to non-adopting states (p < 0.05), and the non-adopting states had significantly higher odds of having hotspots than adopting states (OR = 2.58, 95% CI: 2.04–3.26, p < 0.001). Conversely, the non-adopting states had significantly lower odds of having cold spots compared to the adopting states (OR = 0.24, 95% CI: 0.19–0.32, p < 0.01). States with minimum wage levels at or below the federal level showed significantly higher odds of having hotspots than states with a minimum wage above the federal level (OR = 1.94, 95% CI: 1.51–2.49, p < 0.01). Our findings suggest significant disparities in AD dementia prevalence related to socioeconomic and policy factors and lay the groundwork for future causal analyses.