Wage Costs Research Articles

Industrial Pricing in Turkish Manufacturing During the Early 2000s: A Post-Keynesian Approach

In this study, the pricing behavior of Turkish manufacturing is analyzed using panel data on 22 sub-sectors for the period from 2004 to 2015. The empirical findings of the study largely support the post-Keynesian hypothesis, in that the monopolistic power and non-wage costs of the sectors have a strong relationship with prices. However, one notable finding is that contrary to theoretical expectations, a statistically significant relationship between industrial prices and wage costs could not be determined. This finding implies that labor is not a serious cost element and can be interpreted as reflecting the pressure and flexibility policies established on labor when the neoliberal transformation is gaining momentum. Further, strong statistical evidence supports the validity of markup pricing in the oligopolistic sectors, which appears to have declined after the global financial crisis. Finally, the results indicate that increasing foreign trade openness in those industries with a production structure that is dependent on imported input factors does not appear to discipline markets by suppressing markup rates.

Dynamic Formation of Knowledge Networks and Innovating Firm

We document a series of new facts about the very first firms and patents that form new edges in the directed citation networks across patent categories. We call them pathfinder firms and patents. First, the typical pathfinder firms are very larger firms. Second, the average pathfinder patents have higher quality than other patents in different quality measures. Third, firms innovate faster, market value, profit and productivity increase in the future, when they invent a large number of pathfinder patents or are cited by pathfinder patents currently. Fourth, new citation links generate positive externalities to peer firms that innovate in nearby technology space. We then build a dynamic formation model of knowledge network, where new citations form through both quality based preferential attachment, exact and mutated copying of parent patent’s citations. The model rationalizes the firm level empirical facts. After calibrated to the patent citation data, the model sheds lights on the causes of productivity show down: rising number of citation per patent, marginal cost of patent quality and research wage have driven up the cost to innovate since 1976. Effective R&D policies need to decrease these cost factors.

High-performance work systems and the performance of public sector workplaces in Britain

Abstract We assess the role played by high-performance work systems (HPWSs) in public sector management achieving cost reductions and efficiency savings, and in introducing ‘modernizing’ technical and operational changes. Using a nationally representative survey of public sector workplaces with 50 or more employees we find that increased use of HPWS was positively correlated with workplace financial performance ratings and the implementation of workplace organizational change, and negatively correlated with wage costs. We also find target setting (TS) practices are, as much as HPWS, significantly associated with workplace outcomes. First difference estimates for the financial rating and workplace change outcomes qualitatively support the cross-section findings in these respects. We conclude that both HPWS and TS are important management technologies for managers pursuing government objectives in the public sector.

Порівняння вітчизняної та зарубіжної (європейської) моделей ціноутворення в будівництві

У роботі, на основі теоретичного пошуку встановлено ступінь відповідності і диференціації вітчизняної та зарубіжної (європейської) моделей ціноутворення в будівництві. За результатами проведеного аналітичного дослідження здійснено порівняння структури елементів та їх питомої ваги у вартості будівельно-монтажних робіт за вітчизняною та західною (європейською) методикою розрахунку кошторису.

Monetary Policy Under Steindlian Mark-up Dynamics

ABSTRACT We formulate a macrodynamic model of interaction between a post-Keynesian investment function with endogenous capacity utilization and pro-cyclical mark-up over wage costs in a demand-constrained closed economy. The main objective of the study is to examine whether, in the absence of effective collective bargaining by the workers, monetary policy can resolve class conflict and maintain social stability. We consider a modified version of the counter-cyclical Taylor-type interest-rate rules that targets income distribution through the rate of capacity utilization. We explore the extent to which a combination of pro-cyclical mark-up dynamics and counter-cyclical interest-rate rules can stabilize potentially unstable investment dynamics. We also examine the effectiveness of monetary policy in the form of interest-rate rules in stabilizing output and income distribution.

Jak Niemcy obniżają koszty pracy? Efekty dystrybucyjne

Purpose – Germany is successful in preserving cost advantage internationally while sustaining relatively high total labour costs. This proposal to explain the paradox does not rely on a purely economic analysis of wage costs but considers also non-wage costs which social security system implies but which can also be moderated by a systemic change. Research method – The analysis relies on separating economic sectors (part one) and on identifying particular parties within the social security system (part two). It aims at specific distributive effects. Results – The inter-sector and inter-regional inputs measured by wage costs explain how unit labour costs on average have been pressed down. Namely, competitive industries are able to stimulate their employees by rising wages, and to neutralize the wage-cost increases simultaneously by capturing inputs both from other sectors of national economy as well as from abroad. Accordingly, the „exposed” industries seem to be privileged by the policy of pension reforms which protect employers from continuous growth of non-wage costs shifting the burden of contribution to old-age security onto employees and state budget. Thus, the findings go further than Dustmann et al. who served as inspiration for this analysis of distributive effects.

The Labor Market Impact of Immigration: Job Creation versus Job Competition

This paper studies the labor market effects of both documented and undocumented immigration in a search model featuring nonrandom hiring. As immigrants accept lower wages, they are preferably chosen by firms and therefore have higher job finding rates than natives, consistent with evidence found in US data. Immigration leads to the creation of additional jobs but also raises competition for natives. The dominant effect depends on the fall in wage costs, which is larger for undocumented immigration than it is for legal immigration. The model predicts a dominating job creation effect for the former, reducing natives’ unemployment rate, but not for the latter. (JEL E24, J15, J23, J31, J61, M51)

ПРАВОВЕ РЕГУЛЮВАННЯ ГАРАНТІЙ ГІДНОЇ ОПЛАТИ ПРАЦІ

The purpose of the study is to characterize the problem of implementing the principles that guarantee a decent wage. Based on this goal, the author set such tasks as: 1) to determine the essence of the category "wages" in the mechanism of realization of the right of a person to work; 2) to characterize the purpose of wages as a component of meeting human needs; 3) to establish directions of increase of efficiency of realization of principles of payment of work. The validity and reliability of the obtained scientific results are ensured by the use of a system of general philosophical, general scientific and special scientific methods of cognition. The decisive role in the study was played by general philosophical methods, among which the leading place is occupied by the dialectical method, the system-forming method, the method of forecasting. It is concluded that the level of wages is influenced by a set of macroeconomic and microeconomic external and internal factors, where the role of the latter is played by the level of labor productivity, scale and profitability of the enterprise, wage costs. It is emphasized that the achievement of the appropriate level of efficiency of labor law, which determines the mechanism of legal regulation of wages, should be based on the introduction of a system of public management of labor standards.

A Spatiotemporal Equilibrium Model of Migration and Housing Interlinkages

This paper develops and solves a spatiotemporal equilibrium model in which regional wages and house prices are determined jointly with location-to-location migration flows. The agent’s optimal location choice and the resultant migration process are shown to be Markovian, with the transition probabilities across all location pairs given as non-linear functions of wage and housing cost differentials, endogenously responding to migration flows. The model can be used for the analysis of spatial distribution of population, income, and house prices, as well as for the analysis of the entire dynamic process of shock spill-over effects in regional economies through location-to-location migration. The model is estimated on a panel of 48 mainland U.S. states and the District of Columbia over the training sample (1976-1999) and is shown to fit the data well over the evaluation sample (2000-2014). The estimated model is then used to analyse the size and speed of spatial spill-over effects by computing spatiotemporal impulse responses of positive productivity and land-supply shocks to California, Texas, and Florida. The sensitivity of the results to migration elasticity, housing depreciation rate and local land supply conditions is also investigated.

Determinants of Unmanned Store Usage Intention Based on Situational Theory and the Technology Readiness Index

With the recent rapid development of information and communication technologies, numerous unmanned stores have opened worldwide. These stores have obvious advantages, such as faster checkout processes and fewer employees, cutting wage costs. The unmanned store industry was expected to boom, but some unmanned stores have failed. This industry and academia must examine the factors that attract consumers to unmanned stores. We propose an integrated model using situational factors and the technology readiness (TR) index to examine the types of customers who may be attracted to unmanned stores and their reactions to various environmental settings (situations). To verify our model, 274 valid questionnaires were distributed to BingoBox customers. The results revealed that people with a positive TR index appreciate the benefits of ease of interaction, perceived task completion, and the speed of shopping. Negative TR had a negative impact on perceived task completion.

Occupational Mobility of Routine Workers

This paper analyzes whether occupational polarization takes place within workers or due to changes in the composition of workers by using comprehensive panel data from Finland. The decomposition analysis shows that the decrease in mid-level routine occupations and the simultaneous increase in high-level abstract occupations is largely a within-worker phenomenon. In contrast, the share of low-skilled nonroutine manual tasks has largely increased through entry dynamics. Data on plant closures are used to identify involuntary separations from routine occupations. These results demonstrate a strong, uneven adjustment pattern, with routine cognitive workers being more able to move to abstract tasks and adjust with smaller wage costs than routine manual workers.

Some Issues in the Determination of Ring Frame-Tenters’ Wage Cost Per Kg of Yarn

Some Issues in the Determination of Ring Frame-Tenters’ Wage Cost Per Kg of Yarn

ECONOMIC VIABILITY OF FAMILY FARMS IN EUROPE – A LITERATURE REVIEW

As family farms are the dominant form of agricultural activity in Europe, their economic viability is a prerequisite for the sustainable development of agriculture and rural areas. The aim of this research is to review the latest publications on the economic viability of family farms in Europe. Based on a systematic literature review of studies related to European agriculture published in 2010-2020, this paper presents various concepts of family farm economic viability and assesses the methodologies used. The paper also presents the results of selected empirical research from the last 10 years on family farm economic viability in Europe, broken down into international and national comparisons. Results suggest that the most common approach to measuring economic viability is to use the opportunity cost concept of own factors of production. An important observation is also that, although most studies are based on the FADN database, the results of the analyses are sensitive to the selection of the threshold wage and own capital costs. What contemporary literature lacks is a long-term comparative analysis for all EU countries, as well as studies of drivers of family farm economic viability.

Cost structuring in order to reduce expenses of enterprises

The efficiency of current costs of production resources is the basis of enterprise profitability and competitiveness. This requires annual planning and implementation of specific innovative measures to ensure economical and rational use of all production resources for all structural items and cost elements. The current costs of production resources include costs for: features of technology, organization of construction production, control of production processes, quality assurance of construction work (СW), construction management, sales of construction products. By the nature of participation in the production process, the current costs of production resources are grouped into direct and indirect costs. Of particular note are the costs of basic materials, which by share are the largest among direct (immediate) current production costs, as well as the efficient use of energy resources. In addition, author provides analysis of all components of direct costs, including the cost of basic and auxiliary materials, energy resources, wage costs, operation of machinery and equipment. Innovations and measures of economical and rational consumption of basic materials and energy resources in construction are formed in the following list: material resources - search for rhythmic suppliers, optimization of stocks, ensuring regulatory minimum tolerances, use of serviceable equipment and devices, strict control and self-control of costs, high quality for the first time, training with workers, visual check of sizes and tolerances, strict accounting and compensation for losses. Similarly, the structuring of the two main parts of indirect costs, i.e. general production and administrative, is performed. Such a detailed costs structuring allows for greater specification in the planning and implementation of innovative measures to reduce expenses and increase the level of firm profitability and competitiveness.

Capital structure, Employees' wage and Compensation of the Board of Directors in Iran

The main purpose of this study is to investigate the relationship between capital structure and Employees' wage costs and compensation of the board of directors in Iran. The paper sample consists of 968 observation and 121 firms listed on the Tehran Stock Exchange during 2011-2018. The statistical model used in this study is a multivariate regression model; further, the statistical technique used to test the hypotheses is panel data. The results indicate there is a significant and positive relationship between the financial leverage (calculated to the market value and book value) and the compensation of the board of directors in current and previous year. On the other hand, there is no relationship between the financial leverage and the cost wages. The results also showed that there is a significant negative relationship between employee wages and board compensation. What really sets this paper apart from other studies is that this research will make aware investors and stakeholders of this fact that in some countries like Iran that facing with inflation and we should consider this factor in our analysis. In this research capital structure calculated according book value and market value. In addition, it is the first research that calculated relationship between capital structure, employees' wage and compensation of the board of directors. Undeniably, the study results will complete the knowledge gap between the developed economies and the emerging markets.

AFMB Ltd and Others (Case C-610/18): Definitive Acceptance of the Economic Employer Principle in Multi-State Situations

In this note, the author discusses the ECJ decision in AFMB Ltd and Others (Case C-610/18) wherein the Court determined that the entity that is considered the employer for social security contribution purposes is the undertaking that: (i) has actual authority over the worker, (ii) bears the actual wage costs of the worker and (iii) has the actual power to dismiss the worker.

Effects of labor out-migration on socio-economic set-up at the place of origin: Evidence from rural India

Abstract The rural to urban migration of poor labor to cope with poverty is a common household strategy in rural India and is socio-economically and culturally accepted. Migration can bring some economic gain through remittances, but it also becomes a pain for migrants themselves, their family and the local economy at the origin. In this context, the present paper aims to study the effect of labor out-migration on the socio-economic set up at the place of origin. Based on the primary data of 200 households, the study found that, although the economic condition of the family is improved, the absence of father adversely affects the education and behavior of left-behind children. The wives of the migrant mainly faced security problems and increased workload in the household and farm activities. The study also found that migration might reduced labor supply and decreases farm output due to high wage and input cost. However, agricultural productivity can later increase through compensation by the reinvestment of remittances as farm inputs by the migrant.

Financing government investment and its implications for public capital: A small open economy perspective

Expenditure reductions played a key role in many small open economies during fiscal consolidation, with large declines in public investment. This led to a reduction in public capital stock and affected the competitiveness of these economies. After the sovereign debt crisis, the governments that consider increasing investment to replenish the public capital stock have limited fiscal space and have to avoid external imbalances. We show that using budget-neutral investment spending can generate long-term benefits of higher public capital stock while at the same time limiting negative consequences for the public finances and the trade balance. The best way of financing government investment, which preserves fiscal and trade balances, and increases welfare, is by reducing other government spending. The second-best is financing investment with value-added tax. Financing with debt worsens fiscal and trade balances, while using distortionary labour taxes reduces labour supply, increases wage costs and worsens the trade deficit in the short run.

The self-assessment INTERMED predicts healthcare and social costs of orthopaedic trauma patients with persistent impairments

Objective: To use the self-assessment INTERMED questionnaire to determine the relationship between biopsychosocial complexity and healthcare and social costs of patients after orthopaedic trauma. Design: Secondary prospective analysis based on the validation study cohort of the self-assessment INTERMED questionnaire. Setting: Inpatients orthopaedic rehabilitation with vocational aspects. Subjects: In total, 136 patients with chronic pain and impairments were included in this study: mean (SD) age, 42.6 (10.7) years; 116 men, with moderate pain intensity (51/100); suffering from upper (n = 55), lower-limb (n = 51) or spine (n = 30) pain after orthopaedic trauma; with minor or moderate injury severity (severe injury for 25). Main measures: Biopsychosocial complexity, assessed with the self-assessment INTERMED questionnaire, and other confounding variables collected prospectively during rehabilitation. Outcome measures (healthcare costs, loss of wage costs and time for fitness-to-work) were collected through insurance files after case settlements. Linear multiple regression models adjusted for age, gender, pain, trauma severity, education and employment contract were performed to measure the influence of biopsychosocial complexity on the three outcome variables. Results: High-cost patients were older (+3.6 years) and more anxious (9.0 vs 7.3 points at HADS-A), came later to rehabilitation (+105 days), and showed higher biopsychosocial complexity (+3.2 points). After adjustment, biopsychosocial complexity was significantly associated with healthcare (ß = 0.02; P = 0.003; expß = 1.02) and social costs (ß = 0.03; P = 0.006, expß = 1.03) and duration before fitness-to-work (ß = 0.04; P < 0.001, expß = 1.04). Conclusion: Biopsychosocial complexity assessed with the self-assessment INTERMED questionnaire is associated with higher healthcare and social costs.

ANALISA BIAYA PEMBUKAAN LAHAN TANPA BAKAR DI DESA TELAGA LANGSAT KECAMATAN TAKISUNG KABUPATEN TANAH LAUT

This study aims to find out what PLTB methods are carried out by the community, know the wage system, know the costs, know the most efficient method. The benefits of the research can provide information about methods, costs, wage systems and efficient PLTB methods so that it can be applied to the people of Telaga Langsat Village, Takisung District, Tanah Laut Regency. The basic method of this study uses descriptive methods, conducting direct interviews with the community regarding the cost components needed in land clearing without burning.The results of the research on PLTB activities are the manual method of piece rate wages, for an area of 35 borong or 1 ha, the average wage payment is Rp.36,000,-/borong and the average piece rate is Rp.1,260,000/ha. The manual method of PLTB costs daily wages, the average cost per person daily wage is Rp.75,667,-/day/person, the average daily consumption is Rp.10,000,-/person/day. The average daily wage costs Rp.1,553,000/ha. The cost of the manual method equipment is an average cost of Rp.166,564,-/person. The PLTB activity is a chemical method for piece rate wages, for an area of 35 borong or 1 ha, the average wage payment is Rp.5,617,-/borong, the average piece rate is Rp.196,583,-/ha. The PLTB chemical method costs daily wages, the average cost of a person's daily wage is Rp.61,500,-/day/person, the average daily consumption is Rp.10,000,-/person/day, the average daily wage costs are Rp.201,667,-/ha. The cost of equipment and chemical methods of chemistry on average per person costs Rp.480,033,-/person. the activity of the PLTB mechanical method of piece rate wages, for an area of 35 borong or 1 ha, the average wage payment is Rp.23,619,-/borong and the average piece rate is Rp.826,667,-/ha.