Salary Growth Research Articles

Inequality Affects Long-Run Growth: Cross-Industry, Cross-Country Evidence

The theoretical literature has predicted that inequality affects long-run growth by reducing human and physical capital, particularly in the presence of imperfect credit markets and other contractual frictions. We test these four mechanisms using measures of inequality at the country-level, dating as far back as the 1700s, and the 1800s, and data for 27 manufacturing industries across 88 countries during 1981–2015. Our findings show industries that are more dependent on financial markets experience lower long-run growth in real output, number of firms and real salaries in more unequal countries compared to more egalitarian. Similarly, industries intensive in physical capital experience lower growth in salaries in highly unequal countries. However, there is no evidence that industries intensive in human capital experience any differential growth in output, the number of firms, average number of employees or salaries in unequal countries compared to more egalitarian, suggesting that the progress made in public schooling provision could have lessened the effect of inequality. Moreover, industries with complex contractual arrangements experience lower growth in the number of firms and paradoxically higher growth in the number of employees hired in more unequal countries, in line with the predictions of the theoretical literature. These findings are robust to using contemporaneous indicators of inequality and instrumental variable specifications.

Teachers’ Willingness to Pay for Retirement Benefits: A National Stated Preferences Experiment

Many states have recently made or are considering changes to their teacher retirement systems. However, little is known about how teachers value various elements of their retirement benefits versus other aspects of their jobs and compensation. To help alleviate this gap, we use a discrete choice stated preferences experiment embedded in a nationally representative survey of teachers to estimate their willingness-to-pay for various retirement plan characteristics and other non-salary job components. We find that teachers would be indifferent between a traditional pension and alternative retirement plan designs if the alternatives were paired with 2 to 3 percent salary increases. Our results indicate that experience is a significant mediator of retirement plan preferences. While more experienced teachers are willing to pay more to keep their traditional pension plans, inexperienced teachers do not have strong preferences around retirement plan type. However, teachers’ willingness-to-pay for traditional pension plans is less than their willingness-to-pay for many other elements of their compensation, including the value of retirement benefits, retirement age, salary growth, healthcare coverage, and Social Security enrollment.

The basics of determining the coefficients of a linear correlation

The aim of the paper is to present the basic measures related to the analysis of relationships between quantitative variables used in econometric modelling and their selected applications. The following measures are discussed: the Pearson correlation coefficient, the multivariate correlation coefficient, coefficient of determination, partial correlation coefficient and semi-partial correlation coefficient. A homogeneous approach is applied to the measures presented. Each is defined as a linear correlation coefficient of relevant vectors derived from regression equations. Additionally, mutual relations between the coefficients are described. Bordered matrices have been applied to the calculations, which significantly simplified the process, while the Statistica 13.3 PL program was used to verify the correctness of the calculations. The issue is illustrated in the model of regression of salary growth in Poland in the years 2001–2019 with four covariates, estimated using the least squares method.

Salary Prediction Using Regression Techniques

The goal of this paper is to predict salary of a person after a certain year. The graphical representation of predicting salary is a process that aims for developing computerized system to maintain all the daily work of salary growth graph in any field and can predict salary after a certain time period. This application can take the database for the salary system from the organisation and makes a graph through this information from the database. It will check the salary fields then import a graph which helps to observe the graphical representation. And then it can predict a certain time period salary through the prediction algorithm. It can also be applied in some other effective prediction also.

Is there a price telecommuters pay? Examining the relationship between telecommuting and objective career success

Telecommuting has long been noted for its ability to foster work-family balance and job satisfaction. However, for employees seeking to advance in their careers, it is commonly advised to exercise caution, since telecommuting is often viewed as signaling a lack of dedication to one's career. Despite the prevalence of such advice, almost no research has investigated if telecommuting actually impacts career success in objective terms. Integrating research on the flexibility stigma and signaling theory, we first compared the career success of telecommuters and non-telecommuters using a sample of 405 employees matched with corporate data on promotion and salary growth. Then, we examined the relationship between extent of telecommuting and career success as well as the moderating influence of contextual factors. Results indicated telecommuters and non-telecommuters did not differ in number of promotions, but telecommuters experienced lower salary growth. Additionally, extent of telecommuting was negatively related to promotions and salary growth, indicating it is not simply telecommuting per se that effects career success, but rather the extent of telecommuting. Moreover, work context played a highly influential role. A greater number of promotions were received by extensive telecommuters when they worked where telecommuting was highly normative, and when they engaged in higher supplemental work. Extensive telecommuters with higher supplemental work and higher face-to-face contact with their supervisor also received greater salary growth. Together, results challenge previous research that has tended to portray telecommuting as harmful to one's career success by providing a more informed understanding of how to harness its benefits.

ЦЕННОСТЬ ВЫСШЕГО ОБРАЗОВАНИЯ КАК ФАКТОР СПРОСА

The article highlights the problem of quality of higher education in domestic universities that cannot be solved exclusively by educational institutions, because it requires to change the environment. Consumers of higher education are willing to pay for its value, depending on the career prospects and earnings of graduates. Success in career and earnings for consumers of higher education is determined by their productivity as employees or as entrepreneurs in private business. The effectiveness of University graduates depends on competition in the labor market among employers, competition for consumers and universities competition for the best teachers. Countries with a relatively high share of the public sector also presented low figures of labor productivity due to sluggish competition for skilled labor among firms and low motivation of consumers of higher education to acquire high qualifications. The ability of universities to realize their potential in creating value for consumers depends on the degree of their autonomy from government regulation. Russian universities, which are subject to a heavy burden of state regulation, for this reason may lose in global competition to foreign universities. The increase in the degree of economic freedom has a positive impact on wages in various countries of the world. Freedom from government regulation and control allows universities to make effective decisions that contribute to creating value for consumers at the lowest cost, which positively affects the efficiency of their graduates. The most important resource of universities in the process of production of utility for consumers are highly qualified scientists who are able to create innovations that bring the highest return among other investments. The growth of teachers' salaries is accompanied by the growth of the rating among universities on the quality of higher education. Attractive salary for scientists combined with high requirements for their qualifications in the best universities in the world, allows you to select the best staff for training students and produce the most effective specialists.

Not So Black and White: Uncovering Racial Bias from Systematically Masked Police Reports

Highway police officers, or troopers, may misreport the race of people that they engage with in order to evade detection of racial bias. I propose a new test of racial bias in the presence of misreporting that is well-suited to explore the rich heterogeneity in bias behavior. Using a unique event in Texas where troopers were caught deliberately misreporting minority motorists as white, I find bias against all minority motorists, but especially against Hispanic motorists. I estimate bias for each trooper and find that over 30% of troopers were engaging in this behavior. Using my trooper level measure of bias, I identify causal relationships between bias and labor outcomes using a panel data set of trooper employment outcomes. I show misreporting was used effectively to evade detection of bias, with bias having no effect on labor market outcomes when the misreporting was possible. I find that after a rule change to trooper stop recording policy in response to the misreporting led to negative labor outcomes for biased troopers, specifically, lower rates of promotion and had lower salary growth. I further test how individual trooper bias changes in response to changes in peer, demographic compositions. In particular, black or Hispanic troopers are sensitive to changes in peer composition, while white troopers are unaffected.

Pension liabilities and conservative financial reporting*

ABSTRACT We investigate the relationship between a firm’s conditional financial reporting policy and the tendency to understate pension liabilities in the statement of financial position. We focus on two primary actuarial assumptions for pension liabilities, the discount rate and the salary growth rate, because a small bias in these two actuarial assumptions has a big effect on the estimate of pension liabilities and firms have some latitude in choosing these rates. We predict and find that firms are less likely to choose an upwardly biased discount rate and/or a downwardly biased salary growth rate when their earnings reflect bad news on a timelier basis than good news. Even though the salary growth result is somewhat weak, overall results suggest that firms are less likely to understate their pension liabilities by choosing pension obligation increasing actuarial assumptions when their financial reporting is conditionally more conservative.

Репетиторство в оценках педагогов школ Санкт-Петербурга

The article demonstrates the results of a hands-on survey dedicated to the teachers’ opinion about tutoring as a form of informal education. 497 teachers from different types of schools in Saint Petersburg participated in the survey. The analysis of empirical information shows the positive attitude of the vast majority of teachers towards tutoring and their high degree of readiness to provide tutoring services. As respondents’ answers show, the necessity to prepare for Unified National Exam is becoming the most valid reason for popularity of tutoring. Settlement of issues connected to individualization of learning, salary growth and decrease of number of students in class might become factors preventing growth of school kids’ additional lessons with tutors. The study also shows that Russian science is only starting to explore tutoring as a social phenomenon widely spread in Russian education system.

Implementation of the President’s May 2012 Decrees: Consequences for the Public Sector

In early 2018, growth in wages and salaries in Russia was related to a substantial increase in the labor remuneration of employees in education and healthcare. Such an increase was feasible as a result of implementation of the President’s May 2012 Decrees which set targets as regards wages and salaries of the public sector’s employees. According to the data of January-June 2018, this objective has been achieved, except for individual regions.

Dynamics of accessibility of medicines for type 2 diabetes monotherapy in ukraine

Diabetes mellitus is recognized as noninfectious epidemic in the world. Antidiabetic medications for the patients are taking continually and they are expensive. So, the actual question is the evaluation of the economic availability of antidiabetic treatment. Compared with other similar researches the economic availability of monotherapy of type 2 diabetes mellitus in Ukraine has not been investigated. It was researched in this study. The purpose of the research was scientific generalization of the results of study of the economic availability of monotherapy of type 2 diabetes mellitus in Ukraine from 2013 to 2016. The material of the study were: ATC/DDD-indexes of Centre WHO methodology of statistical studies of drugs, cost of DDDs was calculated according to weighed average cost in November 2013 and November 2016, according to weekly «Pharmacy» information. Methods: frequency analysis, ATC/DDD-methodology, the calculation of socio-economic coefficients of accessibility: liquidity ratio (Cliq), solvency adequacy ratio (Ca.s.), availability ratio (D). Based on the results of our previous studies to analyze the dynamics of socio-economic accessibility have been selected schemes of monotherapy with metformin, gliclazide and glimepiride, as the most commonly used in clinical practice. It has been found that the minimum price for DDD of metformin increased by 101%, for glimepiride – by 65%, for gliclazide – by 41% from 2013 to 2016. In the study of liquidity ratio Cliq, it has been found that there was an increase of price fluctuations from 48 to 295%. In the study of the solvency adequacy ratio Ca.s., it has been found that the accessibility has decreased from 98 to 197%, respectively. In studying of availability ratio D it has been found that the growth rate of salary was lower rates therapy price increases by 67% for metformin, by 44% for glimepiride, by 5% for gliclazide.In the study of economic availability it has been found an increase in prices in 1.4 times for metformin, in 1.25 times – for glimepiride, in 4.3 times – for gliclazide. Accessibility of monotherapy of type 2 diabetes mellitus has been decreased by 98–197%. The rate of wage growth was less than the growth rate of prices for the medications under investigation by 5–67%. The obtained results of a study of the socio-economic accessibility of medicines for type 2 diabetes monotherapy for the population of Ukraine Cliq, Ca.s., D against the background of reducing the rate of salary growth show a decrease in the dynamics of such availability in the period 2013–2016 years.

Physiotherapy education is a good financial investment, up to a certain level of student debt: an inter-professional economic analysis.

What is the economic value of a physiotherapy career relative to other healthcare professions? Is the graduate debt reported for physiotherapy manageable according to recommended salary-weighted debt service ratio benchmarks? Net present value (NPV) is an economic modelling approach that compares costs and benefits of an investment such as healthcare education. An economic analysis using the NPV approach was conducted and reported in US dollars for the Doctor of Physical Therapy degree. Comparable calculations were made for a range of other healthcare qualifications. Debt service ratios were also calculated under a range of scenarios. Entry-level salaries and rate of salary growth were obtained from government databases. Student debt levels were obtained from published sources. Because no national estimate exists for physical therapy student debt, debt was modelled for recent Doctor of Physical Therapy (DPT) graduates and for several hypothetical debt tiers. The NPV modelled future physical therapy earnings less the cost of education and the opportunity cost of foregone earnings from alternate careers. At the debt level reported by recent graduates (US $86563), physical therapy NPV was higher than occupational therapy, optometry, veterinary medicine, and chiropractic but lower than dentistry, pharmacy, nurse practitioner, physician assistant, and all medical specialties. At $150000 debt, physical therapy NPV falls below all careers except veterinary medicine and chiropractic. Students with>$200000 debt may not achieve recommended repayment benchmarks. At high debt levels (>$266000), physical therapy NPV no longer exceeds that of a bachelor's degree. Physiotherapy education is a good financial investment, up to a certain level of student debt. Students should carefully consider the amount of debt they are willing to incur in order to pursue a physiotherapy career. Likewise, physiotherapy education programs should consider the role they may play in bolstering the economic value of their graduates' future careers. [Shields RK, Dudley-Javoroski S (2018) Physiotherapy education is a good financial investment, up to a certain level of student debt: an inter-professional economic analysis. Journal of Physiotherapy 64: 182-190].

Parental Leave Take-Up of Fathers in Luxembourg

The study uses administrative data from Luxembourg to investigate fathers’ decisions to use parental leave. We focus on two measures of opportunity cost: the difference between the parental leave benefit and the salary of the father and the mean salary growth for a period of 6 months for each father. The first measure captures the direct opportunity cost, while the second is a proxy for foregone promotion opportunities. We use Cox proportional hazards model for the analysis. The results suggest a negative relationship between foregone income and taking parental leave. Surprisingly, salary growth appears to be positively related to the hazard of taking parental leave. Coefficients of control variables are in line with previous findings: fathers are more likely to use parental leave if they work in larger organization and for the first child.

Effects of Major League Baseball on Economic Development in the Dominican Republic

This paper examines the growing economic impact of MLB on the Dominican economy. After introducing the Dominican baseball experience, it examines the rapid growth of salaries paid to Dominican-born major league players and provides perspective on how the growth in those salaries relates to growth in Dominican GDP. Because relatively few players account for most of the earnings by Dominican MLB players, the spending and investment patterns of these particular individuals are explored. The paper also examines the growing economic impact of the MLB academies at the grassroots level in Dominican neighborhoods.

ОЦЕНКА ФАКТОРОВ, ВЛИЯЮЩИХ НА ОПЛАТУ ТРУДА В ОБЩЕОБРАЗОВАТЕЛЬНЫХ УЧРЕЖДЕНИЯХ

Over the last years in the system of general education, the situation has arisen when the employees' working environment and their salary fail to meet formal requirements of the legislation. The growth of salaries is either missing or accompanied by the growth of the intensity of work of a teacher. The paper studies the issues of payment for work on the example of two educational institutions of Kazan based on the comparative analysis of the environment the institutions work. The author studied the performance indicators of a general education school and a gymnasium and, on the basis of them, formulated the main problems in the financing and the educational services quality assurance. It is determined that, compared to a state-financed institution, an autonomous institution gets an opportunity to ensure the growth of salary of teachers at the expense of the profits gained in the result of rendering paid services. However, the type of institution influences the amount of financing and, consequently, the salary due to the differences in the financial security standards. Based on the data on forty schools of Kazan, the author created a two-factor model of the influence of the labor intensity of a teacher and the type of educational institution on the payment for work. On the basis of calculations, it is determined that the type of institution, in spite of the moderate relation with the dependent variable, gives the significant growth in the payment for work at the institution, while the growth of teacher’s load influences it much less. It is determined as well that, in the result of the growth of labor intensity at the gymnasium, the results of the unified state exams worsen. On the base of the analysis, the author formulates the main recommendations for the educational institutions in order to improve the operating efficiency and to bring the level of payment for work into accordance with the conditions of carrying on the educational activities.

Structural features of industrial growth policy

The present research is devoted to the main points of industrialization, its possible types and typical structural changes in the production process. To reveal its features we have identified parameters to compare industrialization and de-industrialization processes. According to this fact the industrialization is construed as a managed process of structural transformation of the Russian economy that suggests the movement of resources from mining industry to manufacturing one. This attitude to the process under consideration has revealed two main types of industrialization: the first one is characterised by the growth of industrial production share in GDP, and the second type suggests the increase of production manufacturability when the share of industrial sector in GDP does not change even if it decreases in the total amount of GDP. The revealed types of industrialization demand the specification of their implementation conditions in terms of the current Russian economy to solve all scopes of strategic tasks, such as the development of industrial production on a new technological basis and the increase of import substitution rate. For this purpose using the Minsky frame model we have presented a two sectoral model of economy as an aggregate of consumer and manufacturing sectors. Analytical accurate correlation between salary and labour productivity has been determined on this basis for different industrial growth regimes. The suggested theoretical model demonstrates that salary change rate in the manufacturing sector of production means may increase labour productivity rate in this sector to provide economic growth. Different regimes of economic system dynamics depending on the correlation between salary and labour productivity rates in consumer and production sectors have been determined. They confirm that the compliance of outpacing changes of labour productivity relative to salary is not compulsory to provide economic growth in the country. Moreover, according to the theoretical model it may limit the economic industrial growth. Besides, we have analytically revealed that when salary growth rate in the consumer sector outpaces the labour production growth rates it will lead to a regime when labour productivity growth rate in manufacturing sector must be higher than salary growth rate there. The conclusions we have made may be used as a foundation for the development of strategic priorities to provide security in the field of scientific and technical and technological development of the country. Meanwhile, the development of a complex macroeconomic policy considering the impact of institutional factors will be significant in the current trends of the Russian economy development. This policy will make conditions for further industrialization and the increase of industrial security of the country. Keywords structural policy, industrial growth, manufacturing sector, consumer sector, wages, labor productivity, two sectoral H. Minsky model. Acknowledgements The article has been prepared within the framework of the public order entitled “Macroeconomic and industrial policy of growth: Institutional, structural and technological changes” (№ 0163-2018-0002) of Market Economy Institute of the Russian Academy of Sciences and within the public order of the Centre of Institutes of social and economic development of the Institute of Economics of the Russian Academy of Sciences.

NIH behavioral and social sciences research support: 1980-2016.

The history of behavioral and social science research funding at the National Institutes of Health (NIH) between 1980 and 2016 is reviewed. Noncommunicable diseases are now the primary cause of death worldwide and most are strongly linked to behavior. Developed under the prevailing zeitgeist of the biomedical model, behavioral and social science has often been underfunded at NIH. In 1990, the Senate Appropriations Committee, recognizing that behavior may contribute to about half of all premature deaths, recommended that funding for behavioral and social sciences research should be about 10% of the NIH budget. NIH and American Psychological Association efforts to address this goal are described. Data from several sources suggest that this goal has never been realized. Patterns of federal funding for research may have a significant influence on scientific disciplines. Fields of study that have received more extramural funding are associated with greater growth in faculty and higher faculty salaries. A renewed effort to increase the federal investment in behavioral and social sciences research is necessary. (PsycINFO Database Record

Compromise and Breakthrough: Path Choice of Reform on Judge Salary Mechanism in China

With the reform of the judicial system, especially the deepening of the reform of the category system, the judge’s salary growth rate and specific system have already attracted the attention of the academic and judicial circles. This paper takes the salary system of Chinese judges as the object of study, probes into the path of judge’s salary increase from the angle of political economy, and finally puts forward some reform measures for the lack of wage market competition judge remedial measures from macroscopical and microcosmic two respects.

SCANDINAVIAN FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH OF THE BALTIC STATES

International capital influences not only the growth of GDP but has impact on the other areas of life such as research and development, export or the growth of salaries. Even more, the intensity of inward foreign direct investment (hereinafter – FDI) shows the host country’s openness to foreign capital and its integration into the international market. The article analyses the significance of foreign direct investment in the country and its role in economic development. The authors explore the problems, which exist in attracting FDI. The object of research is the role of Scandinavian capital in the Baltic States. The aim of research is to measure the impact of Scandinavian foreign direct investment on the economic growth of the Baltic States. To implement the aim, the authors of the article apply bivariate correlation and Granger causality test. The research covers the period of 2000-2016. The final results reveal that the Baltic States, especially Latvia, are depended on foreign capital. This proves that the Baltic States compete for inward FDI from Scandinavia. Keywords: foreign direct investment, economic growth, Baltic States, Scandinavian FDI

Housing affordability of university graduates in Guangzhou

Housing affordability is an important policy and academic research agenda in almost all societies. This paper attempts to focus on a specific group of the population, namely recent university graduates, in order to understand how the macro economy, especially the labour market may impact housing affordability. By applying Residual Income Affordability model (RIA) supplemented by Housing Affordability Time (HAT) analysis, we find that housing affordability among young university graduates in Guangzhou is largely dependent on salary growth in the labour market. Labour market structure, especially income adjustment propensity, largely determines housing affordability in a market with constantly high housing demand such as Guangzhou. We find that housing affordability among young university graduates improves with work experience longevity and the corresponding salary increase. Hence, for the younger generation with a good educational background, initial government support in the housing market is more important than long term permanent housing subsidy. In addition, we also examine how graduates from different tiers of universities may differ in their housing affordability at various stages of their life trajectory, ceteris paribus. We find that graduates from higher-ranked universities tend to have higher housing affordability in the long run. This echoes our major conclusion that encouraging the labour market to reward employees with better educational background and more extensive professional experience will help alleviate housing affordability problems in the city. To this end, we provide a number of policy recommendations in both the housing market and other sectors, such as mortgage loans and the labour market to address housing affordability for the younger generation.