Labor Payment Research Articles

Inflation? It’s Import Prices and the Labor Share!

Recognizing that inflation of the value of output and its costs of production must be equal, we focus on a cost-based macroeconomic structuralist approach in contrast to micro-oriented monetarist analysis. For decades the import and profit shares of cost have risen, while the wage share has declined to around 50% with money wage increases lagging the sum of growth rates of prices and productivity. Conflicting claims to income are the underlying source of inflationary pressure. Inflation affects income (labor’s spending power) and wealth. Monetarist theory around 1900 concentrated on the latter (Bryan and the “Cross of Gold)” leading to the standard Laffer curve. It was replaced by the Friedman-Phelps model which has incorrect dynamics (labor payments do not fall during an expansion – they go up). Samuelson and Solow introduced a version of the Phillips curve that violates macroeconomic accounting. Rational expectations replaced Friedman but was immediately falsified by output drops after the Volcker shock treatment around 1980. There followed a complicated transition from rational expectations to inflation targeting, anchored by economists’ misunderstanding of the physical meaning of ergodicity and ontological blindness. It did not help that the real balance effect is irrelevant because money makes up a small part of wealth. Rather than issuing veiled threats of disaster if its policy advice is not followed, the Fed now announces inflation targets which it cannot meet. Contemporary structuralist theory suggests that conflicting income claims set the inflation rate. Firms can mark up costs but workers have latent bargaining power over the labor share that they can exercise. Import costs and policy repercussions complicate the picture, but a simple vector error correction model and visual analysis suggest that money wages would have to grow one percentage point faster than prices plus productivity for several years if the Fed is to meet a three percent inflation target. The results pose a Biden policy trilemma: (i) the only path toward a more egalitarian size distribution of income is through a rising labor share (money wage growth exceeds price plus productivity growth), (ii) which would provoke faster inflation with feedback to rising interest rates, and (iii) the resulting asset price deflation likely facing political resistance from Wall Street and affluent households.

Integral Analysis of RCA of Irkutsk Region Companies

The financial position of a company depends on its liquidity, or otherwise, on how soon the funds invested in the assets turn into real money. The growth of non-payments complicates the company’s rhythmic activities (purchase of raw materials, payment of labor and other expenses generated from revenue) and leads to an increase in accounts receivable. At the same time, excessive diversion of funds to production stocks, work in progress, finished products, etc. leads to the deadening of resources and inefficient use of working capital. Successful solution of the problem of working capital optimization can significantly increase the financial stability of the company, refinance and repay the debt, and significantly facilitate debt restructuring. Therefore, effective management of the company’s working capital is the key to increasing the turnover of property and sales volumes. It involves not only the search for and attraction of additional sources of financing, but also their rational placement in the current assets of the company. The article presents the author’s model of analyzing the profitability of working capital. The article reveals the influence of factors affecting the profitability of working capital and author’s methodical approach to his calculations (method # 2 integral factor analysis, developed by Filatov E.A.). The article presents the author’s analytical, systematic statistical analysis of key performance indicators reveal the influence to change the profitability of working capital of the companies in the Irkutsk region of the Russian Federation.

ДОСЛІДЖЕННЯ СОЦІАЛЬНОЇ ВРАЗЛИВОСТІ НАСЕЛЕННЯ ЛЬВІВСЬКОЇ ОБЛАСТІ

The article studies the number of vulnerable segments of population. It is determined that the highest number of people with disabilities was marked in 2020 – 213.8 thousand people, whereas the smallest – in 2010, i.e. 176.7 thousand people. Increase of the number of people with disabilities consequently causes growth of the number of them per 1000 people of population. In the studied period, an annual growth of the index by 22.9% was marked. The author supplies expected indices of the growth of the number of retired people in Lviv region, forecast of the index of growth of the number of people with disabilities by using a linear model for four future periods; expected indices of increase of the average monthly retirement benefits. The research also examines a change of the number of healthcare establishments in Lviv region in 2013-2020. It is determined that in 2013-2020, hospital accommodation reduced by 24.1%, medical outpatient-polyclinic establishments – by 12.2%, and medical and obstetric centres – by 34.2%. The author of the work studied dynamics of the residential fund of Lviv region in 2013-2020 and determined that the fastest rate of growth of the volume of residential fund was marked in urban territory (by 20.6%). To reduce the negative impact of the factors on the most socially vulnerable categories of population, the state should maximize its efforts to provide conditions for a higher labour payment; to organize an effective system of social and economic defense of employees; to strengthen the targeted social support and primarily support of the vulnerable groups of population; to provide interest-free loans for vulnerable segments of population; to maximum provide housing for orphans after achieving the adulthood age; to educate social responsibility. The goal of the article is to prove the necessity of the social infrastructure development to reduce the social vulnerability of the Carpathian area population. In the process of the article writing, the author used a set of general scientific and specific methods of research. The graphical method was used to make visual presentation and to shape expected indices of growth of the number of retires people in Lviv region, increase of the number of people with disabilities by using a linear model and indices of growth of the average size of monthly retirement benefits. To make theoretical consolidation and conclusions, the abstract and logical method was used.

Minimum size of wage and its differentiation

Raising minimum wage can lead to such a contraction in its differentiation that weakens the stimulating function. The article raises the question of the influence on this function of the minimum wage growth to the level of the subsistence minimum of an able-bodied person. According to Rosstat information, the decrease in the differences in earnings of workers depending on their qualifications began in 2017 and continued in 2019. The R/P10% ratio also declined but was still too high. The study of the causes of this phenomenon is based on the hypothesis that, first of all, it is rooted in the earnings differentiation by type of economic activity (industry). For the analysis, industries were selected in which the key professional groups consist of the most qualified personnel, namely highly qualified specialists and skilled workers. Contraction of inter-qualification differentiation below the reasonable standards took place in industries with wages not higher than the average for all employees. This process began in 2017, when the minimum wage had not yet reached the subsistence level. In key occupational groups in some high-wage industries the differences under consideration reached excessively high values. And in industries with low wages, the differentiation by key groups slightly increased in comparison with 2017. This can be explained by weakening of labor incentives and an attempt to restore them after this weakening. This confirms that ensuring of the reproductive function of payment for labor should be consistent with the effectiveness of the stimulating function. However, without reducing the differences in earnings by industry, achieving such consistency is not possible.

Openness and factor shares: Is globalization always bad for labor?

This paper studies the response of factor shares to the liberalization episode in India during the 1990's, which is characterized by large and unexpected changes in trade and foreign investment policies. We find that access to foreign capital caused an increase in the labor-to-capital relative factor share. As lower tariffs on capital goods and FDI liberalization reduce the cost of foreign capital, firms increase their use of foreign capital relative to domestic capital. This shift in the composition of the capital stock improves capital's productivity per unit of expenditure, which in turn raises wages and the relative labor share. Consistent with this mechanism, firm TFP and the share of firms that import capital both increase in industries with the largest capital cost reductions, while the relatively larger rise of labor payments is observed predominantly for new capital importers. We identify domestic deregulation policies and reallocation to capital-intensive firms as potential determinants of the observed decline in the aggregate labor share. Finally, in a model where domestic and foreign capital are imperfect substitutes, we quantify the effect of a reduction in capital tariffs, and find that it explains a large part of the estimated increase in the labor share found in the reduced form analysis.

Current trends in the use and payment of labor

The authors present the results of statistical analysis of the use of labor in the Russian Federation and, in particular, in agriculture of the Republic of Bashkortostan.

ОРГАНІЗАЦІЯ БУХГАЛТЕРСЬКОГО ОБЛІКУ, ЗВІТНОСТІ Й АНАЛІЗУ ПРАЦІ ТА ЇЇ ОПЛАТИ

ОРГАНІЗАЦІЯ БУХГАЛТЕРСЬКОГО ОБЛІКУ, ЗВІТНОСТІ Й АНАЛІЗУ ПРАЦІ ТА ЇЇ ОПЛАТИ

Audit of payment of staff on payment of labor

Audit of payment of staff on payment of labor

Analysis of applicability of conventional units in power grid companies in the Russian Federation

Value formation for energy transmission services in the Russian Federation is carried out under strict state control, basing on the widespread practice of benchmarking or “best practice” methods. The basis for calculating some of the best indicators is the concept of “unit credit”. (c.u.). Over the past few years, the issue of the “unjustified” application of the CU and the need to review it has been raised several times. The analysis of the current normative documentation has shown that use of different documents allows changing the results of calculation of the basic items of the expenses using c.u. as the basic indicator, for example, the expenses for maintenance service and repair (MRO) regarding a labor payment. This situation arises in the process of transferring the actual labor intensity of maintenance and repair works in c.u. The value of deviation of labor inputs determined by the difference in periodicity and labor intensity leads to significant distortion of result when forming costing and defining the optimum or the most effective values. Thus, these differences can become a tool for manipulation by energy companies when costing making use of benchmarking.

Issues of rationing and determining the total costs of technical service of livestock equipment

The most important main points of the improved methodology for determining the costs of maintenance and repair of livestock equipment with the use of a number of standards are considered, the features of accounting and planning of this type of work (technical service of livestock equipment) are noted. The general provisions of the methodology for calculating the basic salary are given, depending on the choice of the form of payment for labor by the service for maintenance and repair of livestock equipment. To simplify these calculations, a justification is given for establishing a single general coefficient that takes into account accruals on the basic salary of workers when performing various types of work by specialists of farms (accrual of additional wages of workers, deductions for social insurance and the level of overhead costs from the basic salary) , etc.

Social Stability and Resource Allocation within Business Groups

Exploiting data on intra-group transactions and unexpected shocks to regional stability in China, I show that the business groups of state-owned enterprises (SOEs) use internal funds to address social unrest. The government allocates more funds to SOEs in areas affected by social unrest, which are then used, at shareholders’ costs, to generate additional labor payments and investments. However, social sentiment recovers, given these benefits. This SOE channel is large in magnitude, compared to fiscal redistribution, and is stronger when local governments are budget-constrained. This paper provides evidence that the intra-group allocation of resources incorporates political objectives and generates socio-economic impact.

ANALYSIS OF MEDICAL SERVICES FINANCIAL EFFICIENCY IN THE SECONDARY CARE INSTITUTIONS OF SUMY REGION

The aim: The aim of the study is to analyze financial indicators and assess the effectiveness of financing secondary medical care enterprises during the transition period in the context of remuneration to doctors. Materials and methods: To perform the analysis, the financial characteristics of 26 medical facilities have been collected and processed by means of involving the bibliosemantic method, data extract and content analysis. Conclusions: Presents a comparative analysis of labour payment expenses to doctors of cardiology, obstetric and gynecological and surgical departments of medical facilities. The predicted labour payment expenses for the number of services provided have been calculated. Besides, the article makes it clear that the allocation of funds according to bed-day loads and the number of medical services rendered is unsustainable and does not correspond to the real load on the actual position.

СУЧАСНІ ТЕНДЕНЦІЇ ТА ПЕРСПЕКТИВИ РОЗВИТКУ ШЕРІНГОВОЇ ЕКОНОМІКИ

The sharing economy or collaborative economy is a new social economical system, the idea of which is based on the shared usage and shared access to resources, goods and services. Moreover, sharing economy includes their creation, production, distribution, trade and consumption by various people and organizations. The article highlights the problem of regulating the sharing economy, in particular, taxation, labor payment by sharing services and allocation of responsibilities between the participants of the sharing agreement and the platform. The markets of the USA, Europe and China were selected for analyzing current trends of the sharing economy`s development in the world. It is known that rent of apartments and transport are two the most developed areas of sharing. At the same time, the media and entertainment is the most credible sector among all other sharing services. During the research the features and advantages of the sharing economy were revealed, which are: access to a wider and better range of goods and services, reduction of their prices, the ability to earn additional income, saving time through automated rental processes, broadening the outlook and exchanging of experience, saving resources and protecting the environment. It is known that sharing companies are serious competitors of traditional service providers, because of using three models of business development at the same time – leadership strategy by expenditures, strategy of differentiation and focus strategy. Furthermore, the factors of dynamic development of sharing in the world were identified, the main of which is the rapid spread and usage of information technologies, as well as the growth of the world's population, increasing income inequality, the frequency of global financial, environmental and social crises, and increasing the cost`s volatility of natural resources. It is predicted further development and growth of sharing economy, which in 2025 will be comparable to the traditional economy in terms of total revenue. Based on this analysis, the trends of further development of the collaborative economy were justified – consolidation sharing platforms into large online sharing systems, changing the way of consumption, opening up new possibilities for business development and the emergence of new business projects, overcoming corruption, shift in awareness and the level of trust to sharing services, tougher competition and the increased role of the state as a regulator of sharing processes.

Tradability and the Labor‐Market Impact of Immigration: Theory and Evidence From the United States

In this paper, we study how occupation (or industry) tradability shapes local labor‐market adjustment to immigration. Theoretically, we derive a simple condition under which the arrival of foreign‐born labor into a region crowds native‐born workers out of (or into) immigrant‐intensive jobs, thus lowering (or raising) relative wages in these occupations, and we explain why this process differs within tradable versus within nontradable activities. Using data for U.S. commuting zones over the period 1980–2012, we find—consistent with our theory—that a local influx of immigrants crowds out employment of native‐born workers in more relative to less immigrant‐intensive nontradable jobs, but has no such effect across tradable occupations. Further analysis of occupation labor payments is consistent with adjustment to immigration within tradables occurring more through changes in output (versus changes in prices) when compared to adjustment within nontradables, thereby confirming our model's theoretical mechanism. We then use the model to explore the quantitative consequences of counterfactual changes in U.S. immigration on real wages at the occupation and region level.

Сравнительный анализ систем оплаты труда в развитых и развивающихся странах

Сравнительный анализ систем оплаты труда в развитых и развивающихся странах

The Daily Life in Dnipropetrovsk in the Conditions of Post-war Reconstruction of 1944–1947 (by the Contemporaries' Memoirs)

The aim is the daily life of inhabitants of the Dnipropetrovsk (Dnipro) are considered in the conditions of the first post-war years.Research methods: historical and genetic; historical and comparative, system.Main results. The situation in different spheres of city life, state of communal infrastructure, centralized water supply and heating, food supply, priority areas of development of the city economy are shown. The forms and methods of solving the acute problems of the post-war policy and each family, factors of the material and everyday condition of the working people are considered. The ways of restoring the residential area of the city are shown. The restoration of the housing stock was given in two directions: by repairing partially destroyed buildings and, to a lesser extent, by new construction. In the city, due to the lack of material and technical base, mostly one- and two-storey residential buildings were erected. The way out of the situation was the settlement of the incoming families in the apartment of the surviving state houses, as well as the provision of land to those who were ready to solve their housing problems at their own expense. The various spheres of life of the inhabitants of the city in 1944–1947, their social and economic problems are analyzed: the material and communal conditions of their everyday life, social behavior and strategies of survival of different categories of the population of the policy. The social deviations of the deviant character that took place at this time are shown. The situation in the city under conditions of famine of 1946–1947 was studied. The forms and methods of solving problems of specific categories of inhabitants of the city in this difficult period. The attention was paid to such categories as infants, children of nursery, kindergarten and schoolchildren and students of technical schools. The real situation with wages was investigated, it was found that due to the necessity of various types of voluntary and compulsory loans and mandatory taxes, it was low in itself, it could not ensure the proper existence of a person. It is shown that the system of ensuring food and real needs of the population, namely, normalized supply of food and cargoes through the trading network at government prices for cards. It was found that the supply of food and household goods was extremely unsatisfactory, incomparable with a negligible payment of labor, making the price even unattainable, even on the shelves. At the same time different norms were applied for the workers, for the unemployed, the workers of various sectors of the national economy, employees of different institutions and different rank. In parallel, there was state open (commercial) trade with high prices, and also - bazaars at their prices. Many residents of the city were forced to ride in the villages and exchange household items for food. An impoverished day-long menu of many inhabitants of Dnipropetrovsk consisted mainly of vegetable food. Despite the difficult conditions for the restoration of the industrial and residential sectors, the cityʼs social sphere was restored. Understand the destroyed buildings and exported garbage. Every year, thousands of trees were planted on the streets and in parks, new squares were broken, repairs of the pavement, sidewalks, dwelling houses were painted, and markets were adjusted according to sanitary requirements. Works were underway to increase the capacity of urban water supply. Hospitals, various kindergartens were restored. To provide everyday needs of the population, shops were open, workersʼ dining rooms, equipped sports, dance and playgrounds, parks were improved, new baths were renovated and new baths were introduced, working clubs were being built.Main results. It is concluded that the everyday life of the first post-war years of Dnipropetrovsk was characterized by the difficult conditions of the existence of its inhabitants. Despite the ongoing rehabilitation of the city material, domestic and communal conditions of their existence were determined by the complex socio-economic situation, severe socio-demographic consequences of the war, as well as causes of a natural climatic nature. All this determined the strategies of their existence in the difficult conditions in which the majority of the city population, despite the difficulties, continued to fulfill the basic purpose of the person – to live, work, raise and raise children.Practical significance. For the historians of the everyday life of Dnipropetrovsk in post-war times.Originality. On the basis of research materials and memoirs of participants of events, the situation of the city's everyday life was reconstructed.The scientific novelty. The article was first presented in the history of post-war Dnipropetrovsk through the prism of everyday life, the various spheres of the existence of its inhabitants.Type of article: empirical.

Payment of Tax and Labor Wages Debt When the Company Experiences Bankruptcy in Indonesia

The Bankruptcy Decision is both instantaneous and constitutive that it excludes circumstances and creates a new legal state. In the judge's verdict on bankruptcy there are three essentials: the statement that the debtor is bankrupt, the appointment of a Designated Judge of the Judge of the Court and the Curator. Substantively UUK and PKPU still have some weaknesses, as well as in practice. In this study the authors focus on the problem of "Which should take precedence between tax debt with the wages of workers in the case of companies experiencing bankruptcy in Indonesia?". How is the scale of payments prioritized to the separatist, preferred and concurrent creditor in practice is still often found the existence of legal uncertainty. Keywords: debt payments, taxes, workers' wages, bankruptcy, creditors. DOI : 10.7176/JLPG/92-22 Publication date: December 31 st 2019

ОСОБЛИВОСТІ АУДИТУ З РОЗРАХУНКІВ ОПЛАТИ ПРАЦІ

ОСОБЛИВОСТІ АУДИТУ З РОЗРАХУНКІВ ОПЛАТИ ПРАЦІ

Differentiation of requirements for the accuracy of cadastral surveys: the value of real estate as a determining factor

For millennia, the geodesic industry has improved methods and technologies for obtaining information on the location of objects on the Earth's surface, whose key task has been to improve the accuracy and reliability of measurements. At the same time, in recent decades, the rapid development of positioning technologies based on satellite radio navigation systems has created prerequisites for a situation where the acceptable accuracy of determining the geodetic characteristics of real estate becomes quite affordable even when using non-specialized geodetic equipment, including personal mobile devices. The article shows that the error in determining the area of land for registration of rights to real estate has its own "cost", which depends on the value of real estate in the area of survey. By the example of model sites, it is shown that further improvement of the accuracy of engineering surveying to determine the spatial characteristics of real estate objects would be economically feasible only if the cost of geodetic surveys (including the cost of purchasing new geodetic equipment, payment for labor of specially trained engineers, additional technical services and etc.) will not exceed the "cost of error" to determine the area of the site. Using the example of Ukraine, it is shown that the most accurate geodetic surveys (determining turning points of land borders with an accuracy of more than 0.02 m) are economically feasible only when the market value of a land plot exceeds USD 208 per square meter.

Improvement of Approaches to Labor Regulation in Service Sector Enterprises

The article is devoted to the improvement of approaches to labor regulation in service sector enterprises. It has been established that labor regulation as one of the main directions of the personnel management system in modern economic conditions has not only remained relevant but continues to develop. It has been determined that for the improvement of labor regulation, it is necessary to ensure the following: centralized advanced training of regulation professionals, application of specialized regulation software, interconnection of the tariff system of labor payment and the system of its regulation. It has been proved that special attention should be paid to the formation of a scientifically substantiated methodological basis for labor not only at the level of service sector enterprises but also at the national level. It has been found that the special significance of regulation is related to the optimization of a service sector enterprise’s costs, implemented by setting time norms, quantity, service and manageability for all main operations ensuring the uninterruptible performance of the enterprise.