Wage Growth Rates Research Articles

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.

Wage inflation and informal work

Despite the low unemployment rate in the United States, wage inflation has remained modest. This paper investigates whether hidden labor market slack in the form of informal “gig” economy work could help explain this puzzle. Using our Survey of Informal Work Participation for 2015–2016 we find that informal labor is negatively associated with wage growth at the census division level, while no such association exists between wage growth and unemployment rates.

The Life-Cycle Model with Optimal Retiring Age and Simulation

In this paper, a life-cycle model with retirement is set up to study how an individual chooses the optimal retiring age on account of wage growth rate, longevity and healthy state. It is proved that there exists optimal retiring age under given conditions. The numerical simulations are given to show how wage growth rate, longevity and healthy state affect retiring age.

Actuarial fairness in social security calculations: application of a multiple decrement model to compare the social security factor and minimum age rules

Abstract It has been shown that under the social security factor rule current contribution rates are insufficient to cover social security benefits, since the actuarially fair rates are 30.69% and 35.27% for men and women, respectively. However, if the social security reform were approved as submitted, the fair rates would be reduced to 22.25% and 21.60%, respectively. Besides the minimum age, part of this reduction is due to the proposed rules allowing pension values lower than the minimum wage. These results served the objective of this work, which was to compare the actuarially fair social security rates for the General Social Welfare Policy (GSWP), based on the social security factor rules and the minimum age proposal present in Proposed Constitutional Amendment n. 287/2016. The demographic changes that have taken place in Brazil in recent years raise questions about the sustainability of the national social security system and approving social security reform has been a government priority. Therefore, there is an undisputed need for an actuarial study that calculates actuarially fair rates and compares the current scenario with the reform proposals. Multiple decrement actuarial models were used to calculate the fair rates considering a standard family (25-year-old worker, spouse, and two children), in which the man is three years older than the woman. The IBGE 2015 Extrapolated (mortality) and Álvaro Vindas (disability) tables were adopted as biometric assumptions, and a real wage growth rate of 2% p.a. and real interest rate of 3% p.a. were used.

EVALUATION CRITERIA OF THE KHARKIV REGION BUILDING ORGANIZATIONS ACTIVITY FROM THE POSITION OF ANTI-CRISIS MANAGEMENT

The paper states that any economic system can not be in a rest state. Its functioning includes periods of development, periods of rest, and periods of crisis. These processes are cyclic. The results of the factors analysis held among the construction industry employees, provided both in the construction industry in general and in its components and can hinder its development, namely the construction of buildings, construction of buildings and specialized construction work was concluded that the most powerful is financial constraints . It is noted that the problems and achievements of the construction industry in the Kharkiv region are typical for the construction industry throughout Ukraine. The criteria for evaluating the activity of construction organizations of the Kharkiv region from the standpoint of crisis management are determined.It was revealed that the amount of construction works performed in the Kharkiv region is one of the best in Ukraine, also indicators of capital investment in the state budget are one of the highest. There is a high number of employees in construction with low unemployment and a gradual increase in wage growth rate is one of the best in Ukraine. Thus, the construction industry of the Kharkiv region can be considered as the basic model in shaping the principles of crisis management in the construction industry of Ukraine.Decrease in the volume of construction works performed for all types of construction products in 2013-2014 was revealed. It is concluded that the growth rate of operating expenses over the magnitude of operating income indicates an imbalance in the construction enterprises operating activity. It is noted that in crisis any enterprises and enterprises of the construction industry in particular, must have their own stocks for the organization of production, make competent investment policy involving funds from various funding sources.It is concluded that while analysing only the indicators of profitability – net, gross, operating of Kharkiv region construction industry can not be recognized as full. It is important to identify and analyze the hidden potential and problems of construction companies in order to determine the methods of crisis management.

The intergenerational education spillovers of pension reform in China

Economic theory establishes that pension privatization weakens the link between old and young and so reduces the incentive to invest in public education in an economy with lower return rate of capital than growth rate of wage. However, empirical studies of the link change are few. In this paper, we investigate the effects of pension privatization and the central government’s subsidy to individual accounts on public education spending in a three-period overlapping generation model. And then, we take contemporary pension reforms in a number of Chinese provinces as offering natural experiment conditions. Using a difference-in-difference framework and 282 municipal districts panel data over years 1998–2009, we test the pension-education theoretical link change. Both our theoretical and empirical results confirm that pension privatization is adversely associated with local public spending on education in China. Private pension subsidies, moreover, magnify this effect. Our study supports the theoretical assertion and selective empirical findings of a negative intergenerational effect of pension privatization.

A Mathematical Model of Pension Fund Operation and Methods of Fund Stability Analysis

We consider the probability of ruin of a pension fund on a finite time interval. The basis is provided by the standard Cramer–Lundberg model, which is modified by specifying enrolment and contribution parameters in the form of random variables. A number of factors may be treated as random variables in the model: the date of member’s death, members’ wages, the number of fund members, financial indicators (discounting and return rates, inflation, wage growth rates). Each of these factors specified as a random variable affects the nondeterministic behavior of the fund’s receipts and payouts. In this article, the random factors include the number of members joining the pension fund in the relevant year and random mortality.

Staggered Wage Net Discount Rates:Accounting for Possibly “Sticky” Wages

Abstract Schap, Baumann and Guest (Journal of Forensic Economics December 2014) report the time-series properties of wage net discount rates for the period 1981.01-2012.12, formulated on the basis of contemporaneously observed wage growth rates and various discount rates (determined by yields on U.S. Treasury notes of differing maturities). Gerald D. Martin (Determining Economic Damages, various editions) has noted the relatively rapid response of interest rates to economic stimuli compared with that of wages, which, being somewhat institutionally driven, respond with a lag. Of course, Martin was not the first to observe or mention these phenomena, but he does relate the phenomena specifically to the suitability of forensic economic application of wage net discount rates as typically derived (i.e., using contemporaneously observed wage growth rates and discount rates). The present study takes account of wage growth rates influenced by possible institutional factors by lagging the time frame of their observation relative to discount rates when the two are combined to form what we term “staggered” wage net discount rates. The staggered net rates constructed for the post-1980 era are then examined for stationarity and magnitude. The choice of lag structure for the staggering is empirically determined, but in conjunction with lag durations suggested by the macroeconomics literature on “sticky” wages. The reported results should be of interest to forensic economists that use wage net discount rates as well as critics of their use.

Can public works increase equilibrium wages? Evidence from India’s National Rural Employment Guarantee

We estimate the impact of the world’s largest public works program, India’s National Rural Employment Guarantee Scheme (NREGS), on agricultural wages. NREGS was rolled out across India in three distinct phases, and this phased introduction is used to identify difference-in-difference estimates of the program effect. Using monthly data on wage rates from the period 2000–2011 in 209 districts across 18 Indian states, we include district-specific fixed effects and trends to control for differences in wage rates in the absence of the program. We find that, on average, the program boosted the growth rate of real daily agricultural wages by 4.3% per year. The effect of the scheme is more consistent with an increase in the growth rate of wages than with a discontinuous jump in wages. The effect was concentrated in some states and in the agricultural peak season, appears to have been gender-neutral and was biased towards unskilled labor. Since many of the world’s poorest depend on casual agricultural labor for their livelihood, while at the same time minimum-wage legislation is unlikely to be effective in many developing countries, we argue that rural public employment programs constitute a potentially important anti-poverty policy tool.

DEMOGRAPHIC RISK AND SOCIAL SUSTAINABILITY OF THE PENSION SYSTEM

: In the framework of this study, we have obtained a mathematical model for maintaining the financial sustainability of PAYG pension systems.
We introduce the term financial soundness, by which we understand the maintenance of a balance between the contributions to the pension system and the costs of pension payments. We have proved that the financial sustainability of PAYG systems depends on the growth rates of wages, the growth rate of contribution rates. And demographic factors such as the ratio of the number of pensioners and the working population. However, in the context of countries' competition for investment and the impossibility of increasing the rates of contributions to the pension system, as well as the limited business opportunities to increase wages, the financial sustainability of PAYG systems is determined only by demographic factors. Financial stability in such conditions is violated in case of excess of the rate of increase in pension payments over the rates of Support Ratio (ratio of working population and pensioners.

Modeling the fiscal costs and benefits of alternative treatment strategies in the United Kingdom for chronic hepatitis C

Background: Hepatitis C (HCV) infection causes substantial direct health costs, but also impacts broader societal and governmental costs, such as tax revenue and social protection benefits. This study investigated the broader fiscal costs and benefits of curative interventions for chronic Hepatitis C (CHC) that allow individuals to avoid long-term HCV attributed health conditions.Methods: A prospective cohort model, assessing the long-term fiscal consequences of policy decisions, was developed for HCV infected individuals, following the generational accounting analytic framework that combines age-specific lifetime gross taxes paid and governmental transfers received (i.e. healthcare and social support costs). The analysis assessed the burden of a theoretical cohort of untreated HCV infected patients with the alternative of treating these patients with a highly efficacious curative intervention (ledipasvir/sofosbuvir [LDV/SOF]). It also compared treating patients at all fibrosis stages (Stages F0–F4) compared to late treatment (Stage F4).Results: Based on projected lifetime work activity and taxes paid, the treated cohort paid an additional £5,900 per patient compared to the untreated cohort. Lifetime government disability costs of £97,555 and £125,359 per patient for treated cohort vs no treatment cohort were estimated, respectively. Lifetime direct healthcare costs in the treated cohort were £32,235, compared to non-treated cohort of £26,424, with an incremental healthcare costs increase of £5,901 per patient. The benefit cost ratio (BCR) of total government benefits and savings relative to government treatment costs (including LDV/SOF) ranged from 1.8–5.6. Treating patients early resulted in 77% less disability costs, 43% lower healthcare costs, and 33% higher tax revenue.Conclusion: The ability to cure Hepatitis C offers considerable fiscal benefits beyond direct medical costs and savings attributed to reduced disability costs, public allowances, and improved tax revenue. Changes in parameters, such as productivity, wage growth, and tax rates, can influence the conclusions described here.

Growth, structural change and wages in India: recent trends

This paper attempts to analyse the trend in growth rate of wages in the last two decades. The broad trend in wages and the wage structure are examined in the context of changing structure of employment and output in the economy over time using different data sources. The rapid acceleration during 2008–2013 and subsequent collapse of wages has raised questions on the earlier consensus on drivers of change in agricultural wages. The emergence of non-farm sector and the declining importance of agriculture is examined along with the new patterns of rural-urban interlinkages, public expenditure led employment creation such as MGNREGA and wage-inflation spiral.

(Analysis of Inflation Processes in Russian Regions)

Russian Abstract: В представленной работе исследованы инфляционные различия в российских регионах, а также причины, их вызывающие. Было установлено, что на протяжении 2000-2016 годов отклонения темпов региональной инфляции устойчиво снижались. Общие факторы, одинаковые для всех российских регионов, объясняют в среднем 22% вариации региональных темпов инфляции. Остальную долю объясняют региональные, специфические, факторы. Среди региональных факторов значимо влияют на инфляционные отклонения в регионах структура региональной экономики, темпы роста реальных заработных плат, а также доля социальных выплат в совокупных денежных доходах региона. Помимо этого, в данной работе показано, что в российских регионах существует внутренний механизм синхронизации уровней цен в регионах (эффект конвергенции); и выравнивание региональных уровней цен происходит за счет различных темпов региональной инфляции. English Abstract: This paper is studied the inflation differentiations in Russian regions, and their causes. It was found, that deviations of the rates of regional inflation were declined steadily during 2000-2016. Common factors, which are the same for all Russian regions, explain on average 22% of the variation in regional inflation rates. The other part of the variation is explained by regional, specific, factors. Among the regional factors such factors, as structure of the regional economy, growth rate of real wages, and the share of social payments in the total monetary incomes of the region significantly affect inflationary deviations in Russian regions. In addition, this paper shows there is an internal mechanism for synchronizing price levels in the regions (the convergence effect) in the Russian regions. According to this effect, the leveling of regional price levels occurs at the expense of different rates of regional inflation.

DETERMINANTES DEL PROCESO INFLACIONARIO. UN ANÁLISIS DE COINTEGRACIÓN PARA EL CASO DE MÉXICO, 1980-2001

En este trabajo se emplea el análisis de cointegración para hacer un estudio de los determinantes del proceso inflacionario en México, para el periodo que abarca de enero de 1980 a diciembre de 2001. Asimismo, se reconoce la existencia de persistencia e incertidumbre inflacionarias que modifican sustancialmente la senda de la inflación, lo cual es tratado a través de un modelo de corrección de error de tipo GARCH-M. La relación de largo plazo se establece entre el nivel del tipo de cambio y las tasas de crecimiento de los salarios, de los precios y de la oferta monetaria. Se encuentran al menos dos relaciones de cointegración, lo cual puede indicar que, para el largo plazo, alguna variable se ajuste en el proceso y debería pensarse en un modelo donde no sólo se le considerara como exógena.

THE IMPACT OF PERSONALITY TRAITS ON WAGE GROWTH AND THE GENDER WAGE GAP

ABSTRACTThis paper considers the impact of personality traits on the change of the gender wage gap. Using data from the German Socioeconomic Panel (SOEP), we first explore how personality traits affect wage growth rates. Then, a decomposition analysis is performed to analyse the dynamic effects of personality traits on the change of the gender wage gap over time. Our empirical results indicate that gender differences in conscientiousness and emotional stability lead to a widening of the wage gap over time. By contrast, gender differences in extraversion lead to a narrowing of the wage gap over time.

An evaluation of pension differentials between Chinese private and public sectors from perspective of protection and incentives over the lifecycle

This article evaluates pension differentials between the private and public sectors over the lifecycle in urban areas in China. The aim of this study was to examine social equity in the face of increasing pressures to reform the current pension system. We developed a model to measure the protection and incentives offered by pensions in the private and public sectors. By incorporating educational cost, career length, retirement age, average years that a retiree receives the pension after retirement, growth rate of wages, interest rates and pension benefits into the model, we provided actuarial assessments. This study found that the current institutional arrangement of pensions in China results in negative incentives for workers in the public sector.

ДИНАМІЧНИЙ МАРКЕТИНГОВИЙ АНАЛІЗ ВІТЧИЗНЯНОГО РИНКУ ПРОТИВІРУСНИХ ЛІКАРСЬКИХ ЗАСОБІВ ГРУП J05AB01, J05AХ05, J05AХ10

У статті висвітлені результати маркетингового аналізу груп противірусних препаратів, які рекомендовано для лікування хворих на дитячі вірусні інфекції (вітряну віспу, кір, краснуху). Упродовж 42 місяців - з 01.01.2013 до 01.07.2016 р. - був проведений щомісячний моніторинг їх асортименту, середніх оптово-відпускних цін, коефіцієнтів ліквідності та платоспроможності населення. Встановлено, що противірусні препарати груп ацикловіру У05ДВ01), інозинпранобексу^05ДХ05) та інших противірусних У05ДХ10: амізону, протефлазіду, флавозіду) є достатньо представлені на вітчизняному фармацевтичному ринку, доступність яких зросла наприкінці моніторингу. Найнижчою їх оптово-відпускна ціна була у січні 2013 р., а найвищою - у жовтні - листопаді 2014 та 2015 рр., березні - квітні 2016 р. Не спостерігається прямої залежності між динамікою оптової ціни препаратів і динамікою курсу гривні відносно до долара, оскільки стрибки підйому оптово-відпускних цін випереджували ріст долара на 1-3 місяці для одних ліків, а для інших, навпаки, на тлі загального росту відбулося різке зниження ціни. Тому на даний час цей сегмент оптового фармацевтичного ринку лікарських засобів не можна вважати достатньо прогнозованим.

The Life Cycle Model, Replacement Rates, and Retirement Income Adequacy

The key insight of the life cycle model in economics is that a household’s consumption at any given time is determined not so much by its current income as by the total income available to the household over its lifetime. A replacement rate can be a useful tool in approximating the life cycle model’s predictions for how households prepare for retirement. The Social Security Administration’s Office of the Chief Actuary (SSA OACT) publishes two different calculations of retirement income replacement rates, each of which finds that Social Security benefits replace about 40% of a typical retiree’s pre-retirement earnings. Some interpret these figures as indicating that Social Security benefits are insufficiently generous and that U.S. households’ total retirement saving is inadequate. But SSA OACT’s two methods for calculating replacement rates both violate the life cycle model in a meaningful way. SSA OACT’s career-average earnings replacement rates, in which lifetime earnings are first indexed upward by the rate of economywide wage growth, exaggerates by roughly one-fifth the real value of earnings available to a household for consumption over its lifetime. This overstatement lowers a household’s measured ability to replace their pre-retirement earnings. SSA OACT’s final-earnings replacement rates effectively compare Social Security retirement benefits to pre-retirement earnings only in the years in which the individual worked, ignoring the life cycle model’s prediction that household consumption is a function of long-term average earnings, including years in which a household member was not employed. A replacement-rate calculation more consistent with the life cycle model would compare retirement income to an average of real earnings calculated over a significant number of years. Such an approach would find substantially higher replacement rates for the typical retiree. It is important both for Social Security policy and the analysis of overall retirement savings adequacy that replacement-rate calculations build on the insights of the life cycle model that guides most economic analysis of retirement saving.

Optimal Contribution and Investment in a Defined Benefit Pension Plan When the Return Rate of Risky Assets is Time Series Correlated and Cyclical Change

This work considers stochastic models of defined benefit pension plans. Stochastic growth rate of salary, and stochastic mortality is allowed to evaluate pension plan. Especially important thing is that based on Momon (2004), we extend Vasicek model to multi-dimentional cases and use it to mode the return rates of multi-risky assets invested and the growth rate of wage with time series correlation and cyclically changes. we apply time inconsistent dynamic programming and establish objective function of minimizing the sum of the valatilities of the contribution and the return rate of investment portfolio in order to determine dynamically optimal contribution rate and investment strategy.

The challenge to china’s enterprises from increasing labor costs: the product quality perspective

ABSTRACTUsing China Employer–Employee Survey data, this paper investigates the possible heterogeneous results of increasing labor costs of different firms. The paper finds that, unskilled labors have a higher wage growth rate than the skilled labor. Firms with higher product quality employ more skilled labor, and thus are less affected by the increasing labor costs. On the other hand, firms with higher product quality have less elastic demand, which makes it possible for them to increase their prices without demand decreasing. The conclusions are well supported by the data. Therefore, we should treat the challenge of increasing labor cost in a new way. The real challenge of increasing labor cost is greater for low-quality firms. The empirical results suggest that some of the low-quality firms should upgrade their quality to a higher level to offset their labor cost increase.Abbreviations: CEES: China Employer-Employee Survey LP: Labor productivity LTP: Lewis turing point TFP: Total factor productivity