Real Wage Income Research Articles

Income Redistribution Effect of Raising the Overall Planning Level of Basic Endowment Insurance for Urban Employees in China

It is the focus of social security system reform at this stage in China to promote the transition of basic endowment insurance for urban employees from provincial overall planning level to national overall planning level, which is of great significance to the realization of fair and efficient of economic development. Based on the micro data of China Household Finance Survey 2017 (CHFS2017), this paper first establishes a personal wage prediction model to estimate the distribution of personal lifetime wage income, then designs two pension collection and payment plans of “direct national overall planning” and “indirect national overall planning”, and establishes an actuarial model of pension to calculate the present value of personal lifetime contribution, lifetime claim and lifetime real wage income after pension adjustment under different overall planning levels. Finally, the income gap index and net benefit rate index are used to measure the change of the whole income gap and the transfer of pension benefits. The results show that on the whole, the basic endowment insurance for urban employees does have a significant income redistribution effect, and its income adjustment effect is positively related to the overall planning level and intensity of the system. Under the current provincial overall planning level, the income redistribution effects of the system are as follows: the high-income group transfers to the low-income group, the young generation to the elderly generation, the female insured person to the male insured person, and the non-state-owned economic unit to the state-owned economic unit. With the improvement of the overall planning level and strengthening of intensity, there are differences in the changes of benefits among different groups.

Australian Capital City Real House Prices, 1979–1993

AbstractReal house prices have increased by 35 per cent in Australian capital cities during the last 15 years, with Brisbane, Canberra, and Sydney experiencing rises of 48 to 61 per cent and Adelaide, Melbourne and Perth having increases of 20 per cent or less. This article estimates a single model for the six cities to explain the divergent real price behaviour over time and space. It is concluded that the fundamental forces driving real house prices are the growth rate in real wage income (primarily due to employment growth) and the growth in population caused by net overseas migration.

Fiscal stabilisation and monetary integration in Europe: A short-run analysis

An adverse supply shock hits a two-country Mundell-Fleming world and causes unemployment and a higher cost of living. The optimal budgetary policies under non-cooperative and under international policy coordination are then contrasted under a regime of floating exchange rates, a regime of managed exchange rates with hegemony (such as the EMS), and a symmetric regime of fixed exchange rates (such as the EMU). The welfare loss depends on unemployment, real wage income and budgetary imbalance. Attention is also paid to the effects of indexation of wages on the cost of living and of interactions between Europe and the US. The results shed some light on the short-run stabilisation aspects of the proposals of the Delors Committee for economic and monetary union in Europe.