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1

Hasan, Rana, and Karl Robert L. Jandoc. "Workers’ Earnings in the Philippines: Comparing Self-Employment with Wage Employment." Asian Development Review 27, no. 01 (June 2010): 43–79. http://dx.doi.org/10.1142/s0116110510000023.

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Analysis of labor force survey (LFS) data since the early 1990s reveals several important changes in the structure of the Philippine labor force. One is the movement from self-employment to wage employment across a wide range of production sectors. To evaluate this change in terms of workers’ earnings, we combine information on household incomes from the Family Income and Expenditure Survey with information on household members’ employment-related activities from the LFS. We also examine broad structural trends for employment, wages, and earnings. The findings indicate high variance in the earnings of the self-employed and their earnings and educational profiles resemble those of casual wage employees. Both are surpassed by those of permanent wage employees even when observable worker characteristics are controlled for. As self-employment gives way to wage employment, especially casual wage employment in the services sector, the key policy challenge is tackling the slow growth of wages and earnings.
2

Fu, Duanxiang, Qing Zhang, and Mengjie Zhang. "Statistical Analysis of the Influence of Sino-U.S. Minimum Wages on Employment." Mobile Information Systems 2022 (May 31, 2022): 1–12. http://dx.doi.org/10.1155/2022/6573614.

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From 2004 to 2015, the minimum wage’s employment effect varied according to the minimum wage level, FDI, per capita gross domestic product, and labor production in 31 Chinese provinces. Regardless of the amount of investment, the minimum wage raise lowered hiring as FDI intake increased. In this research paper, we aim to study different scenarios that can help raise the minimum wage without harming employment. We will evaluate the influence of employment’s minimum wage change in China (world's largest emerging market) and the U.S. (the largest developed country) using co-integration regression analysis. The minimum wage system is a basic wage and social security system that the governments have used to interfere directly in labor market wages. The data enumerated and collected is from 2003 to 2016, which is published annually by both governments. Our emphasis is on the overall employment impact, accommodation, and foodservice industry impact. According to the findings, the minimum wage increase has a minor impact on overall employment in China. However, it has a beneficial impact on employment in the U.S. In China and the U.S., minimum wage raise has a significant beneficial influence on employment in the retail and foodservice industries. The impact on the U.S., however, is higher than on China.
3

Ahlawat, Vanita, and Renu. "An Analysis of Growth and Association between Labour Productivity and Wages in Indian Textile Industry." Management and Labour Studies 43, no. 1-2 (January 23, 2018): 78–87. http://dx.doi.org/10.1177/0258042x17745182.

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India is one of the largest textile producers in the world. Textile industry is huge employment-providing industry after agriculture in India. The present article is an attempt to analyse first, the growth and composition of employees engaged in textile industry in India. Second, to find the growth and relation between employments, man-days employed, wages and net value added (NVA) by textile industry in India. And lastly, the impact of labour productivity in wage determination is also analysed. The results suggested that there is huge gender disparity in employment, that is, women are very few in comparison to men workers. Overall employment in textile has an increasing trend among both categories of textile industry. Further, spinning, weaving and finishing of textile manufacturing is growing faster than manufacturing of other textiles. Employment in textile industry has a positive and significant correlation with real wage rates in both categories of industries. This indicates that increase in real wage rate causes enhancement in employment in textile manufacturing. And further results suggest that labour productivity is a significant determinant of wage rate of textile employees.
4

Thompson, Lyke, Greg Powers, and Berenice Houchard. "The Wage Effects of Supported Employment." Journal of the Association for Persons with Severe Handicaps 17, no. 2 (June 1992): 87–94. http://dx.doi.org/10.1177/154079699201700203.

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This study investigated the effects of supported employment on wages earned by persons with disabilities. We sought to determine whether supported employment produced higher wages than sheltered employment, whether any effect was a result of increases in wage rates or hours, and whether one model of supported employment had more impact than another. The analysis showed that wages increased after entering supported employment, after correcting for differences in employees' measured IQs. Entry into supported employment had a more consistent impact on wage rates than on hours of employment. Individual placement was shown to have the largest effect on wages, while participation in mobile crews had little effect.
5

Baldwin, Marjorie L., and William G. Johnson. "The Employment Effects of Wage Discrimination against Black Men." ILR Review 49, no. 2 (January 1996): 302–16. http://dx.doi.org/10.1177/001979399604900208.

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When labor supply curves are upward-sloping, wage discrimination against black men reduces not only their relative wages, but also their relative employment rates. Using data from the 1984 Survey of Income and Program Participation, the authors estimate wage discrimination against black men and, for the first time, quantify the effects of that discrimination on the employment of black and white men. They find that 62% of the difference in offer wages to black and white men, and 67% of the difference in their observed wages, cannot be attributed to differences in productivity. Assuming that the unexplained wage differential is attributable entirely to employer discrimination, then the disincentive effects of wage discrimination reduced the relative employment rate of black men from 89% to 82% of white men's employment rate. Thus, wage discrimination and its employment effects resulted in a substantial transfer of resources from blacks to whites in 1984.
6

Machin, Stephen, and Alan Manning. "The Effects of Minimum Wages on Wage Dispersion and Employment: Evidence from the U.K. Wages Councils." ILR Review 47, no. 2 (January 1994): 319–29. http://dx.doi.org/10.1177/001979399404700210.

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Using data on Wages Council coverage from the United Kingdom New Earnings Survey, the authors examine the impact of mandated minimum wages on wage dispersion and employment in the United Kingdom in the 1980s. They find evidence that a dramatic decline in the toughness of the regulation imposed by the Wages Councils through the 1980s—a decline, that is, in the level of the minimum wage relative to the average wage—significantly contributed to widening wage dispersion over those years. There is, however, no evidence of an increase in employment resulting from the weakening bite of the Wages Council minimum pay rates. Instead, consistent with the conclusions of several recent U.S. studies, the findings suggest that the minimum wage had either no effect or a positive effect on employment.
7

Menon, Nidhiya, and Yana van der Meulen Rodgers. "The Impact of the Minimum Wage on Male and Female Employment and Earnings in India." Asian Development Review 34, no. 1 (March 2017): 28–64. http://dx.doi.org/10.1162/adev_a_00080.

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This study examines how employment and wages for men and women respond to changes in the minimum wage in India, a country known for its extensive system of minimum wage regulations across states and industries. Using repeated cross sections of India's National Sample Survey Organization employment survey data for the period 1983–2008 merged with a newly created database of minimum wage rates, we find that, regardless of gender, minimum wages in urban areas have little to no impact on labor market outcomes. However, minimum wage rates increase earnings in the rural sector, especially for men, without any employment losses. Minimum wage rates also increase the residual gender wage gap, which may be explained by weaker compliance among firms that hire female workers.
8

Wang, Zi‐cheng, and Wei‐guo Yang. "Self‐employment or wage‐employment?" China Agricultural Economic Review 5, no. 2 (May 3, 2013): 231–47. http://dx.doi.org/10.1108/17561371311331115.

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9

Munshi, Farzana. "Do Minimum Wages Reduce Employment? Some Empirical Evidence from Bangladesh." Bangladesh Development Studies XLI, no. 3 (June 2, 2019): 57–72. http://dx.doi.org/10.57138/hcgn5512.

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Minimum wage policy is practiced in many countries with the intention of establishing a wage floor for low-wage workers having less bargaining power in the labour market. However, there is some evidence that such well-intended policy might have adverse effects on employment. This study employs a basic model where firm level employment data for a sample of 27 firms for the period 2000-2015 is used to analyse the effects of changes in minimum wage on employment in the readymade garments industry in Bangladesh. The main results suggest that higher minimum wages result in higher formal employment, particularly female employment, in these firms. The major policy implication of the study is to support the enforcement of suitable regulation to ensure competitive and fair wages as well as workers welfare.
10

Boockmann, Bernhard, Raimund Krumm, Pia Rattenhuber, and Michael Neumann. "Turning the Switch: An Evaluation of the Minimum Wage in the German Electrical Trade Using Repeated Natural Experiments." German Economic Review 14, no. 3 (August 1, 2013): 316–48. http://dx.doi.org/10.1111/geer.12016.

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Abstract The introduction, abolition and subsequent re-introduction of the minimum wage in the German electrical trade gave rise to series of natural experiments, which are used to study minimum wage effects. We find similar impacts in all three cases on wages, employment and the receipt of public welfare benefits. Average wages are raised by the minimum wage in East Germany, but there is almost no evidence for employment effects. The results also show that the wage effect is quickly undone after the abolition of the minimum wage.
11

Cengiz, Doruk, Arindrajit Dube, Attila Lindner, and Ben Zipperer. "The Effect of Minimum Wages on Low-Wage Jobs*." Quarterly Journal of Economics 134, no. 3 (May 2, 2019): 1405–54. http://dx.doi.org/10.1093/qje/qjz014.

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Abstract We estimate the effect of minimum wages on low-wage jobs using 138 prominent state-level minimum wage changes between 1979 and 2016 in the United States using a difference-in-differences approach. We first estimate the effect of the minimum wage increase on employment changes by wage bins throughout the hourly wage distribution. We then focus on the bottom part of the wage distribution and compare the number of excess jobs paying at or slightly above the new minimum wage to the missing jobs paying below it to infer the employment effect. We find that the overall number of low-wage jobs remained essentially unchanged over the five years following the increase. At the same time, the direct effect of the minimum wage on average earnings was amplified by modest wage spillovers at the bottom of the wage distribution. Our estimates by detailed demographic groups show that the lack of job loss is not explained by labor-labor substitution at the bottom of the wage distribution. We also find no evidence of disemployment when we consider higher levels of minimum wages. However, we do find some evidence of reduced employment in tradeable sectors. We also show how decomposing the overall employment effect by wage bins allows a transparent way of assessing the plausibility of estimates.
12

Desideria, Deyana, Purwaka Hari Prihanto, and Hardiani Hardiani. "Analisis pengaruh pertumbuhan ekonomi, investasi, belanja daerah, inflasi dan upah terhadap kesempatan kerja di Provinsi Jambi." e-Jurnal Ekonomi Sumberdaya dan Lingkungan 8, no. 2 (July 1, 2019): 121–35. http://dx.doi.org/10.22437/jels.v8i2.11988.

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The purpose of this research were to analyze the economic growth, investation, government expenditure, inflation, and wage the employment of Jambi Province. This research used ordinary least squares. The F test indicated that simultaneously the variables of the economic growth, investation, government expenditure, inflation, and wage significantly affected the employment of Jambi Province. While T test revealed that partially investation, government expenditure, and wage affected the employment of Jambi Province. Meanwhile, the variables of economic growth and inflation insignificant to the employment of Jambi Province. Keywords: Employmen Oppotunity, Investation, Government Expendicture, Wage.
13

Grigsby, John, Erik Hurst, Ahu Yildirmaz, and Yulia Zhestkova. "Nominal Wage Adjustments during the Pandemic Recession." AEA Papers and Proceedings 111 (May 1, 2021): 258–62. http://dx.doi.org/10.1257/pandp.20211056.

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In this paper, we show that the pandemic recession has led to frequent cuts in nominal wages. Within three months in 2020, as many wage cuts had occurred as occurred throughout the Great Recession. Unlike employment declines, wage cuts were concentrated at the top of the wage distribution. However, these cuts have been relatively short lived, particularly among high earners. Finally, wage cuts have been concentrated in firms that have seen large employment declines. Wage cuts appear not to be a substitute for cutting employment, at least when the shock to labor demand is this large.
14

Oppenheimer, Robert J. "Unemployment, Employment, and Wage Rates Continued to Improve for Aboriginals in 2018." Journal of Aboriginal Economic Development 11, no. 2 (October 2019): 88–107. http://dx.doi.org/10.54056/odch5535.

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Employment, unemployment and wage rates improved for Aboriginals in Canada in 2018, while their participation rate decreased. For non-Aboriginals unemployment and wage rates also improved; however, their employment rate was unchanged, and their participation rate decreased. All four of these employment measures, which are employment, unemployment, participation, and wages, rates are and historically have been more favourable for non-Aboriginals than for Aboriginals. The differences in employment and wage rates are partially explained by the education level completed. The measures of employment are examined by gender, age, province, economic sector, education, and for Métis, First Nations, and Inuit.
15

Mora, Jhon J., and Juan Muro. "Wage–employment elasticity: a meta-analysis referring to Colombia." Journal of Economic Studies 47, no. 6 (April 2, 2020): 1495–505. http://dx.doi.org/10.1108/jes-04-2019-0151.

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PurposeThe article clarifies the wage–employment relation in a developing country. Several years ago, many articles in the United States indicated that the relation between increasing wages and increasing unemployment is unclear. These articles from the United States are insufficient to be applicable to all countries, especially developing countries such as Colombia where institutions and the wage–employment relation differ from those in the United States.Design/methodology/approachA meta-analysis methodology was used as 28 estimates of long-run wage–employment elasticity in Colombia from 1998 to 2016 were analyzed.FindingsThis article provides insights into how real wages affect employment. Despite publication biases, results showed that a 1% increase in wages results in a 0.11% decline in employment in the long run.Research limitations/implicationsDue to the publication bias, it is not considered how variables such as sectors, estimation strategies (panel data, partial adjustment, cointegration and non-linear least squares, among others), formal/informal urban sectors, government services and transportation, and qualified and unskilled workers affect the true elasticity value.Practical implicationsThis paper includes implications for public policy because the results are important to minimum wages policy in a developing country.Originality/valueThere are no studies regarding the wage–employment relation in a developing country. The empirical results obtained in this article are useful for regulators, policy makers and researchers to understand whether employment is affected by real wages.
16

Kucel, Aleksander, and Montserrat Vilalta-Bufi. "Entrepreneurial skills and wage employment." International Journal of Manpower 37, no. 3 (June 6, 2016): 556–88. http://dx.doi.org/10.1108/ijm-01-2015-0021.

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Purpose – Promotion of entrepreneurial skills is often considered as an adequate policy to enhance job creation and economic growth. However, neither the definition of entrepreneurial skills, nor the costs and benefits of such a policy are clear. The purpose of this paper is to check whether the benefits of entrepreneurial skills extent beyond self-employment. The authors denote entrepreneurial skills as those competencies that enhance the likelihood of self-employment. Then the authors analyze whether they are rewarded in wage employment. Design/methodology/approach – The authors estimate a Heckman selection model with wages in a salaried job as the main dependent variable and working in wage employment vs self-employment as the selection equation. The authors use a sample of higher education graduates from Spain, from the year 2000 interviewed in 2005 within the REFLEX survey. Findings – Results reveal that alertness to new opportunities, ability to mobilize others and knowledge of other fields are the competencies that enhance self-employment in Spain. Yet, these skills are not rewarded in a salaried job. Therefore, benefits of policies fostering entrepreneurial skills do not extend to wage employment in Spain. Research limitations/implications – The exclusion restriction used in the analysis is father’s education. The authors assume that all the effect of parental education on wages goes through education attainment of the individual and her ability (proxied by her grade in secondary education). A better proxy for ability would be desirable. Originality/value – The authors identify which competencies enhance self-employment in Spain. The authors find that these competencies are not rewarded in wage employment, so the benefits of policies promoting entrepreneurial education remain within self-employment activity only.
17

Arumugam, Mahendran, and Indrakant Sulibhavi. "Does MGNREGS Promote Inclusive Growth? What do Evidence Indicate?" Asian Journal of Agriculture and Development 14, no. 1 (June 15, 2017): 51–72. http://dx.doi.org/10.37801/ajad2017.14.1.4.

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The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in India seeks to provide a specified number of days of employment at a specified wage rate to interested rural households, and ensures equal wages between male and female workers. MGNREGS will benefit wage seekers directly by providing assured employment and pay, which will enhance their purchasing power; and indirectly by increasing the rural market wage rate. The nature of work of some employment opportunities under MGNREGS will likely improve the infrastructure at both community and individual levels, mostly of small-scale and marginal farmers, which is expected to improve the income levels of the poor. Using evidence from Andhra Pradesh before its bifurcation, the present study sought to determine if MGNREGS promotes inclusive growth. The empirical study used both primary and secondary data. The analyses reveal that MGNREGS promotes inclusive growth by augmenting openmarket wages, reducing gender wage differentials, increasing the proportion of Scheduled Castes among the participating households, improving the employment and income levels of wage seekers, and deriving substantial benefits compared to government expenditure on the Scheme.
18

Burda, Michael C., and Stefanie Seele. "Reevaluating the German labor market miracle." German Economic Review 21, no. 2 (June 26, 2020): 139–79. http://dx.doi.org/10.1515/ger-054-19.

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AbstractFrom 2003 to 2018, employment in Germany increased by 7.3 million, or by 19.3 % – growth not observed since unification. This “labor market miracle” was marked by a persistent and significant expansion of both part-time and low-wage jobs and a deterioration in pay for these jobs, while total hours hardly increased; overall wage growth returned only after 2011. These developments followed in the wake of the landmark Hartz reforms (2003–2005). A modified framework of Katz and Murphy (1992) predicts negative correlation of wages with both relative employment and participation across cells in the period following these reforms. In contrast, wage moderation alone should generate positive association of wages and participation. Our findings are most consistent with a persistent, positive labor supply shock at given working-age population in a cleared labor market. An alternative perspective of labor markets, the search and matching model, also points to the Hartz IV reforms as the central driver of the German labor market miracle.
19

Neumark, David, and William Wascher. "Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws." ILR Review 46, no. 1 (October 1992): 55–81. http://dx.doi.org/10.1177/001979399204600105.

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Using panel data on state minimum wage laws and economic conditions for the years 1973–89, the authors reevaluate existing evidence on the effects of a minimum wage on employment. Their estimates indicate that a 10% increase in the minimum wage causes a decline of 1–2% in employment among teenagers and a decline of 1.5–2% in employment for young adults, similar to the ranges suggested by earlier time-series studies. The authors also find evidence that youth subminimum wage provisions enacted by state legislatures moderate the disemployment effects of minimum wages on teenagers.
20

Smirnykh, L. I., A. V. Aistov, and E. N. Taruninа. "The effects of previous entrepreneurial experience on subsequent wage-employment wages." Voprosy Ekonomiki, no. 12 (December 7, 2018): 103–20. http://dx.doi.org/10.32609/0042-8736-2018-12-103-120.

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The article considers influence of entrepreneurial experience on the wageemployment wages. Empirical analysis is based on the RLMS-HSE panel data, 2000—2013, with using fixed effects models on the overall sample, five-year- and flexible window. Results show that transition from entrepreneurship to wageemployment leads to penalty of wages. Wage growth rate of former entrepreneurs’ lag behind the wage growth rate of workers without entrepreneurial experience. The size of wage-penalty decreases if the profession remains the same in transition from entrepreneurship to wage-employment.
21

Hermawan, Gery, Erfit Erfit, and Purwaka Hari Prihanto. "Pengaruh belanja modal, investasi dan upah minimum terhadap pertumbuhan ekonomi melalui kesempatan kerja di Kabupaten Batanghari." e-Jurnal Perspektif Ekonomi dan Pembangunan Daerah 10, no. 3 (October 8, 2021): 157–68. http://dx.doi.org/10.22437/pdpd.v10i3.16518.

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This study aims to: 1) determine and analyze the effect of capital expenditure, investment, and minimum wage on employment opportunities in Batanghari Regency and 2) determine and analyze the effect of capital expenditure, investment, and minimum wage on economic growth through employment opportunities in Batanghari Regency. Based on the results of multiple linear regression that partially investment variables have a significant effect on employment opportunities. In contrast, capital expenditures and minimum wages have no significant effect on employment opportunities in Batanghari Regency. Based on the results of multiple linear regression that partially, the minimum wage and employment opportunities have a substantial effect on economic growth, while capital expenditure and investment variables have no significant effect on economic growth in Batanghari Regency. Keywords: Capital expenditure, Investment, Minimum wage, Employment opportunity, Economic growth.
22

BODURI, Leonard, Bora ALIMERI, and Emirgena Nikolli. "The impact of the minimum wage on employment. The case of Albania." Economicus 23, no. 1 (2024): 132–44. http://dx.doi.org/10.58944/cdlw9773.

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Purpose: This paper examines the impact of minimum wage adjustments on wages and employment dynamics in Albania. Utilizing the standard competitive model, an escalation in the minimum wage is anticipated to lower employment levels. Specifically, the two-sector model suggests that a rise in the minimum wage would decrease employment within the covered sector while potentially increasing it within the uncovered sector, particularly in developing countries where the latter sector holds a substantial portion of employment. Methodology: The research draws on secondary sources, analysing existing literature and previous studies investigating the correlation between minimum wage adjustments and employment levels. Findings have been varied regarding the minimum wage’s impact on employment, with some indicating a decrease in employment levels or an increase in unemployment due to minimum wage hikes. However, studies specifically focusing on Albania are scarce. Data were collected on minimum wage adjustments and unemployment levels from 2017 to 2022 to assess the relationship between minimum wage changes and unemployment rates, aiming to ascertain whether minimum wage regulations have positively influenced unemployment reduction. Findings: Analysis of the collected data reveals a trend in Albania where increases in the minimum wage correlate with decreases in unemployment. Value: This paper recommended that it is necessary for a more in-depth analysis to be made about the impact of occasional changes in the minimum wage level. It is also recommended that the government consult with business analysts and economic experts and with the businesses themselves so that the change in the minimum wage does not negatively affect the economic development of the country. Keywords: minimum wage, employment level, unemployment, analysis.
23

Kezios, Katrina L., Peiyi Lu, Sebastian Calonico, and Adina Zeki Al Hazzouri. "History of Low Hourly Wage and All-Cause Mortality Among Middle-aged Workers." JAMA 329, no. 7 (February 21, 2023): 561. http://dx.doi.org/10.1001/jama.2023.0367.

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ImportanceEarning a low wage is an increasingly recognized public health concern, yet little research exists on the long-term health consequences of sustained low-wage earning.ObjectiveTo examine the association of sustained low-wage earning and mortality in a sample of workers with hourly wage reported biennially during peak midlife earning years.Design, Setting, and ParticipantsThis longitudinal study included 4002 US participants, aged 50 years or older, from 2 subcohorts of the Health and Retirement Study (1992-2018) who worked for pay and reported earning hourly wages at 3 or more time points during a 12-year period during their midlife (1992-2004 or 1998-2010). Outcome follow-up occurred from the end of the respective exposure periods until 2018.ExposuresLow-wage—less than the hourly wage for full-time, full-year work at the federal poverty line—earning history was categorized as never earning a low wage, intermittently earning a low wage, and sustained earning a low wage.Main Outcomes and MeasuresCox proportional hazards and additive hazards regression models sequentially adjusted for sociodemographics, and economic and health covariates were used to estimate associations between low-wage history and all-cause mortality. We examined interaction with sex or employment stability on multiplicative and additive scales.ResultsOf the 4002 workers (aged 50-57 years at the beginning of exposure period and 61-69 years at the end), 1854 (46.3%) were female; 718 (17.9%) experienced employment instability; 366 (9.1%) had a history of sustained low-wage earning; 1288 (32.2%) had intermittent low-wage earning periods; and 2348 (58.7%) had never earned a low wage. In unadjusted analyses, those who had never earned low wages experienced 199 deaths per 10 000 person-years, those with intermittent low wages, 208 deaths per 10 000 person-years, and those with sustained low wages, 275 deaths per 10 000 person-years. In models adjusted for key sociodemographic variables, sustained low-wage earning was associated with mortality (hazard ratio [HR], 1.35; 95% CI, 1.07-1.71) and excess deaths (66; 95% CI, 6.6-125); these findings were attenuated with additional adjustments for economic and health covariates. Significant excess death and elevated mortality risk were observed for workers with sustained low-wage exposure and employment fluctuations (eg, for sustained low-wage × employment fluctuated, HR, 2.18; 95% CI, 1.35-3.53; for sustained low-wage × stable employment, HR, 1.17; 95% CI, 0.89,-1.54; P for interaction = .003).Conclusions and RelevanceSustained low-wage earning may be associated with elevated mortality risk and excess deaths, especially when experienced alongside unstable employment. If causal, our findings suggest that social and economic policies that improve the financial standing of low-wage workers (eg, minimum wage laws) could improve mortality outcomes.
24

Mbratana, Taoufiki, and Andrée Fotie Kenne. "Investigating gender wage gap in employment." International Journal of Social Economics 45, no. 5 (May 14, 2018): 848–66. http://dx.doi.org/10.1108/ijse-04-2017-0131.

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Purpose The purpose of this paper is to investigate the gender wage disparity in paid employment and self-employment. To achieve this objective, the Cameroon Household Consumption Survey of 2007 is used. The main question considered in this paper is why women paid employment and self-employment wages are relatively low. In a whole, what are the underlying factors that generate and explain wage gap between men and women householders in employment? Design/methodology/approach First, the paper uses the Oaxaca-Blinder Decomposition to explain wage gap. Thereafter, the Quantile Regression Decomposition using Machado and Mata approach is applied in order to see the gap at different levels of the wage distribution. Findings The main finding indicates that in both methods, the wage gap is due to an unexplained component in self-employment and explained component in paid employment, particularly with strong effects at the extreme of wage distribution. Research limitations/implications The topic of this paper helps to explain and analyse the functioning of the Cameroonian labour market. Practical implications The findings can be applied to narrow the gender wage gap by eliminating discrimination and approving the principle of equal opportunity, support policies that reduce obstacles preventing women from starting and developing their businesses to encourage more women to become entrepreneurs and achieve harmonisation between work and family life. Originality/value Using available data survey, this paper is the first to identify and decompose the causes of paid employment and self-employment gender wage gap in Cameroon.
25

Wescher, Lance, Travis Hutchinson, and Anna Rannou. "Minimum Wages, Employment, and College Enrollment." American Economist 64, no. 1 (July 20, 2018): 3–18. http://dx.doi.org/10.1177/0569434518787485.

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Most studies of the effects of minimum wage laws look exclusively at the labor market. This article investigates the less-researched topic of the effects of a minimum wage increase on enrollment in undergraduate higher education institutions in the United States. With a higher opportunity cost of pursuing an education given a higher minimum wage, potential students may opt to work instead of attend college. Conversely, if an increase in the minimum wage raises the unemployment rate for young workers, more people may enroll in college, as they are unable to find employment. Using restricted geocode variables and panel data from National Longitudinal Survey of Youth (NLSY97) over a period of time in which every state saw an increase in its effective minimum wage, we find that higher minimum wages do correspond to lower levels of college enrollment. We use a multinomial probit model to examine how tradeoffs are made between employment and college enrollment. Finally, we examine the transition path between college enrollment and employment. JEL Classification: I23, J24, and E24.
26

Golnau, Wiesław. "Problem nisko opłacanych pracowników w Polsce na tle innych krajów gospodarki rynkowej." Annales. Etyka w Życiu Gospodarczym 11, no. 1 (May 15, 2008): 273–84. http://dx.doi.org/10.18778/1899-2226.11.1.26.

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Research which has been carried out in countries with developed market economies indicates that since the 1980s there has been a systematic increase in wage inequality. As a result, low-wage employment has increased. In recent years, many academic institutions in developed countries have been conducting research into the scale, causes and consequences of low wages. Such research has not as yet been systematically carried out in Poland. This article aims to contribute to the research. Its objective is to establish the scale and causes of low-wage employment in Poland in the last sixteen years. The contents of the article are divided into three parts. The first part is devoted to the methodology of measuring low wages. The second part concerns the frequency of low wages in Poland and other countries with market economies. The third part of the article presents factors influencing the scale of the occurrence of low wages. According to the research, the number of people in low-wage employment in Poland systematically increased in the period from 1989 to 2004. In 2004 this number exceeded 22% of all working people. A similarly high percentage of low-wage employment is found only in Korea, Hungary, Great Britain, the USA and Canada.
27

Kreiner, Claus Thustrup, Daniel Reck, and Peer Ebbesen Skov. "Do Lower Minimum Wages for Young Workers Raise Their Employment? Evidence from a Danish Discontinuity." Review of Economics and Statistics 102, no. 2 (May 2020): 339–54. http://dx.doi.org/10.1162/rest_a_00825.

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We estimate the impact of youth minimum wages on youth employment by exploiting a large discontinuity in Danish minimum wage rules at age 18, using monthly payroll records for the Danish population. The hourly wage jumps by 40% at the discontinuity. Employment falls by 33%, and total input of hours decreases by 45%, leaving the aggregate wage payment almost unchanged. We show theoretically how the discontinuity may be exploited to evaluate policy changes. The relevant elasticity for evaluating the effect on youth employment of changes in their minimum wage is in the range 0.6 to 1.1.
28

Aretz, Bodo, Terry Gregory, and Melanie Arntz. "The Minimum Wage Affects Them All: Evidence on Employment Spillovers in the Roofing Sector." German Economic Review 14, no. 3 (August 1, 2013): 282–315. http://dx.doi.org/10.1111/geer.12012.

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Abstract This study contributes to the sparse literature on employment spillovers of minimum wages. We exploit the minimum wage introduction and subsequent increases in the German roofing sector that gave rise to an internationally unprecedented hard bite of a minimum wage. We look at the chances of remaining employed in the roofing sector for workers with and without a binding minimum wage and use the plumbing sector that is not subject to a minimum wage as a suitable benchmark sector. By estimating the counterfactual wage that plumbers would receive in the roofing sector given their characteristics, we are able to identify employment effects along the entire wage distribution. The results indicate that the chances for roofers to remain employed in the sector in eastern Germany deteriorated along the entire wage distribution. Such employment spillovers to workers without a binding minimum wage may result from scale effects and/or capital-labour substitution.
29

Bradley, Michael E. "Efficiency Wages and Classical Wage Theory." Journal of the History of Economic Thought 29, no. 2 (June 2007): 167–88. http://dx.doi.org/10.1080/10427710701335901.

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In The General Theory, John Maynard Keynes lumped together the marginalist and neoclassical economics of the late nineteenth and twentieth centuries and the more narrowly defined “classical” economics of Adam Smith, David Ricardo, J. R. McCulloch, James and John Stuart Mill and other mainstream economists of the late eighteenth and early nineteenth into what he called the “classical theory of employment,” which he reduced to two “fundamental postulates”:(a) The wage is equal to the marginal product of labour…(b) The utility of the wage when a given volume of labour is employed is equal to the marginal disutility ofthat amount of employment…(Keynes 1936, p. 5).
30

Seltzer, Andrew J., and Jeff Borland. "The Impact of the 1896 Factory and Shops Act on the Labor Market of Victoria, Australia." Journal of Economic History 78, no. 3 (September 2018): 785–821. http://dx.doi.org/10.1017/s0022050718000359.

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This article examines the effects of the Victorian Factory and Shops Act, the first minimum wage law in Australia. The Act differed from modern minimum wage laws in that it established Special Boards, which set trade-specific minimum wage schedules. We use trade-level data on average wages and employment by gender and age to examine the effects of minimum wages. Although the minimum wages were binding, we find that the effects on employment were modest, at best. We speculate that this was because the Special Boards, which were comprised of industry insiders, closely matched the labor market for their trades.
31

Edo, Anthony. "The Impact of Immigration on Native Wages and Employment." B.E. Journal of Economic Analysis & Policy 15, no. 3 (July 1, 2015): 1151–96. http://dx.doi.org/10.1515/bejeap-2014-0075.

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Abstract This paper investigates the immigration impact on native outcomes using microlevel data for France. I find that immigration does not affect the wages of competing natives, but induces adverse employment effects. This finding is consistent with a wage structure that is rigid in France. The quality of the data allows to dig more deeply into the interpretation of the immigration impact. First, I show that immigrants displace native workers because they are more willing to work at lower wages due to lower outside options. Second, I find that natives on short-term contracts, who are less subject to wage rigidities, do experience wage losses due to immigration.
32

Tandrayen-Ragoobur, Verena, and Rajeev Pydayya. "Gender wage differential in private and public sector employment." Gender in Management: An International Journal 31, no. 3 (May 3, 2016): 222–48. http://dx.doi.org/10.1108/gm-08-2014-0071.

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Purpose This paper aims to analyse the magnitude of the gender wage disparity in the public and private sectors in Mauritius across both mean differentials and overall wage distribution. The paper then decomposed the gender wage differential using the Oaxaca and Blinder (1973) decomposition technique. Design/methodology/approach The study uses cross-sectional data from the Continuous Multi-Purpose Household Budget Survey (CMPHS), from 2006 to 2013. The sample size on average is around 12,000 households surveyed per year. Findings The results reveal that that gender wage differentials are prevalent in both economic sectors; however, the disparity is more pronounced in the private sector. In addition, the differences in wages are larger at the bottom compared to the top end of the wage distribution, suggesting the presence of sticky floors. Lastly, it was observed that the unexplained wage gap (discrimination) is higher in the private sector than in public sector across the years. Originality/value The literature on the gender wage gap in Africa is limited. This paper adds to the existing literature on gender wage differential with an analysis of the gender wage disparity across the public and private sectors in Mauritius.
33

Nurhayati, Siti, and Sumarno . "Law Enforcement against the Implementation of the Provisions Payment of Workers’ Wages is Reviewed from Aspects of Employment Criminal Law." International Journal of Research and Review 8, no. 9 (September 4, 2021): 57–71. http://dx.doi.org/10.52403/ijrr.20210910.

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Wage problems are the most commonly disputed issues between workers and employers, which can result in disharmony in employment relationships. For the workers / workers see wages as a source of income to meet the needs of life and family, while on the part of employers see wages as one of the burdens that must be borne because it is part of the cost of production. Employers who pay wages lower than the minimum wage are part of the criminal law of the employment field. The position of employment law in the field of criminal law needs to be applied so that criminal matters related to employment can be enforced on this civilized and civilized earth. Doctrinal research type, normative juridical. The results obtained from this study that wage payments below the District Sector Minimum Wage (UMSK) are not only sanctioned by the company but also subject to criminal sanctions in accordance with Article 88E paragraph (2) juncto Article 185 of Law No. 11 of 2020 on Copyright Work. The reason for wage payment under UMSK is due to the situation and condition of the company that is not financially able to make a joint agreement between workers / workers and the company can’t be legally allowed The Company has not filed a suspension of wage payments under UMSK to the Department of Manpower and Transmigration, so the Company's actions are contrary to the legislation and null and void and the Court can impose a prison sentence of 2 (two) years in prison and a fine of Rp. 200,000,000.00 (two hundred million rupiah). Keywords: Law Enforcement, Wage Payment, Criminal Employment.
34

Jardim, Ekaterina, Mark C. Long, Robert Plotnick, Emma van Inwegen, Jacob Vigdor, and Hilary Wething. "Minimum-Wage Increases and Low-Wage Employment: Evidence from Seattle." American Economic Journal: Economic Policy 14, no. 2 (May 1, 2022): 263–314. http://dx.doi.org/10.1257/pol.20180578.

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Seattle raised its minimum wage to as much as $11 in 2015 and as much as $13 in 2016. We use Washington State administrative data to conduct two complementary analyses of its impact. Relative to outlying regions of the state identified by the synthetic control method, aggregate employment at wages less than twice the original minimum—measured by total hours worked—declined. A portion of this reduction reflects jobs transitioning to wages above the threshold; the aggregate analysis likely overstates employment effects. Longitudinal analysis of individual Seattle workers matched to counterparts in outlying regions reveals no change in the probability of continued employment but significant reductions in hours, particularly for less experienced workers. Job turnover declined, as did hiring of new workers into low-wage jobs. Analyses suggest aggregate employment elasticities in the range of —0.2 to —2.0, concentrated on the intensive margin in the short run and largest among inexperienced workers. (JEL J22, J23, J24, J31, J38, R23)
35

Card, David. "Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage." ILR Review 46, no. 1 (October 1992): 22–37. http://dx.doi.org/10.1177/001979399204600103.

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The imposition of a national minimum wage standard provides a natural experiment in which the “treatment effect” varies across states depending on the fraction of workers initially earning less than the new minimum. The author exploits this fact to evaluate the effect of the April 1990 increase in the federal minimum wage on teenagers' wages, employment, and school enrollment. Comparisons of grouped and individual state data confirm that the rise in the minimum wage increased teenagers' wages. There is no evidence of corresponding losses in teenage employment or changes in teenage school enrollment.
36

Hall, Robert E. "Employment Fluctuations with Equilibrium Wage Stickiness." American Economic Review 95, no. 1 (February 1, 2005): 50–65. http://dx.doi.org/10.1257/0002828053828482.

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Following a recession, the aggregate labor market is slack–employment remains below normal and recruiting efforts of employers, as measured by help-wanted advertising and vacancies, are low. A model of matching friction explains the qualitative responses of the labor market to adverse shocks, but requires implausibly large shocks to account for the magnitude of observed fluctuations. The incorporation of wage stickiness vastly increases the sensitivity of the model to driving forces. I develop a new model of the way that wage stickiness affects unemployment. The stickiness arises in an economic equilibrium and satisfies the condition that no worker-employer pair has an unexploited opportunity for mutual improvement. Sticky wages neither interfere with the efficient formation of employment matches nor cause inefficient job loss. Thus the model provides an answer to the fundamental criticism previously directed at sticky-wage models of fluctuations.
37

Donggyun Shin. "Wage and Employment Effects of Wage Subsidies." KUKJE KYUNGJE YONGU 17, no. 2 (August 2011): 159–92. http://dx.doi.org/10.17298/kky.2011.17.2.007.

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38

NEWMAN, CHRISTINE M. "Work and wages at Durham Priory and its estates, 1494–1519." Continuity and Change 16, no. 3 (December 2001): 357–78. http://dx.doi.org/10.1017/s0268416001003915.

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This article explores aspects of employment on the Durham Priory estates in the years 1494–1519. From a perspective of prices and wages, this period belongs at the tail end of a Golden Age for labour. Employment opportunities for the priory workforce should, therefore, have been relatively plentiful and remuneratively rewarding. However, as an analysis of the priory's accounts reveals, whilst wage rates remained stable, the waged employment offered was irregular and piecemeal for all but a small, predominantly skilled elite, with the majority of the workforce enjoying little in the way of fixed employment patterns or identifiable career structures.
39

Susilowati, Lina, and Dwi Wahyuni. "Pengaruh Upah Minimum Terhadap Penyerapan Tenaga Kerja Bidang Industri Di Indonesia." Equilibrium: Jurnal Ekonomi-Manajemen-Akuntansi 15, no. 2 (November 1, 2019): 222. http://dx.doi.org/10.30742/equilibrium.v15i2.699.

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The minimum wages policy in Indonesia raises many pros and cons. This is due to increasing the minimum wage will have an impact on increasing the income of workers, at the same time an increase in the minimum wage adds to the burden of costs on employers. Some studies saw that increasing minimum wages policy can increase employment while other studies saw e opposite results. This study aimed to analyze the effect of minimum wages on employment in the industrial sector in Indonesia for the period 2012-2017.This study used a control variable from the supply side namely the labor force and used a quantitative approach using panel regression analysis techniques with 6 year time series data for the 2012-2017 period combined with 33 province cross section data. The results showed that the minimum wage had a negative effect on employment in the industrial sector in Indonesia for the period 2012-2017. Whereas the labor force control variable has a positive influence on employment.
40

Siahaan, Zefany Odelia Cristy, Merry Tjoanda, and Dezonda Rosiana Pattipawae. "Perlindungan Hukum Pekerja Terhadap Perjanjian Kerja." TATOHI: Jurnal Ilmu Hukum 3, no. 12 (February 29, 2024): 1182. http://dx.doi.org/10.47268/tatohi.v3i12.2110.

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Introduction: Labor law guarantees that every worker has the right to a decent livelihood for humanity, one of which is realized in the form of wages and employers are prohibited from paying wages under the minimum wage provisions. This emphasizes the provision of legal protections for workers to ensure the fulfillment of workers' basic rights. However, in practice there are stillemployers who provide workers with wages below the minimum wage. Sothat workers have difficulty meeting their needs and workers' right to a decent livelihood for humanity is not achieved. Purposes of the Research: to find out and analyze the implementation of the employment agreement and the legal protection of workers against the employment agreement. Methods of the Research: This research uses the normative legal research method which is carried out by examining legal materials to answer the legal issues faced.Results of the Research: The results showed that the implementation of the employment agreement had met the requirements of the employment agreement, but the entrepreneur CV Gemilang Sukses defaulted on the wage element. Because, in the employment agreement, CV Gemilang Sukses employers promised to pay workers' wages according to the Ambon City Minimum Wage. However, in its implementation, it turns out that the entrepreneur CV Gemilang Sukses pays workers' wages below the Ambon City Minimum Wage. Then, the legal protection that workers can get from employment agreements is in the form of legal protection of workers for wages, work time, rest time and time off from working overtime, disabled workers, female workers, pregnant, childbirth, child labor, occupational safety and health, termination of employment, labor social security and morals, decency and treatment according to human dignity and dignity. . Such protection can be provided through preventive legal protections such as the creation of employment agreements and the filing of objections before signing employment agreements and through the protection of repressive laws, namely the establishment of efforts to resolve labor disputes. The existence of legal protection in order to ensure the fulfillment of the basic rights of workers, equalityvtreatment without discrimination for the realization of welfare for workers and their families, taking into account the progress of the business world and the interests of employers.
41

Kudlyak, Marianna. "How Cyclical Is the User Cost of Labor?" Federal Reserve Bank of San Francisco, Working Paper Series 2024, no. 10 (March 31, 2024): 01–25. http://dx.doi.org/10.24148/wp2024-10.

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In employment relationships, a wage is an installment payment on an implicit long-term agreement between a worker and a firm. The price of labor that impacts firm’s hiring decisions, instead, reflects the hiring wage as well as the impact of economic conditions at the time of hiring on future wages. Measured by the labor’s user cost, the price of labor is substantially more pro-cyclical than the new-hire wage or the average wage. The strong procyclicality of the price of labor calls for other forces for cyclical labor demand to explain employment fluctuations.
42

Kudlyak, Marianna. "How Cyclical Is the User Cost of Labor?" Journal of Economic Perspectives 38, no. 2 (May 1, 2024): 159–80. http://dx.doi.org/10.1257/jep.38.2.159.

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In employment relationships, a wage is an installment payment on an implicit long-term agreement between a worker and a firm. The price of labor that impacts firm's hiring decisions, instead, reflects the hiring wage as well as the impact of economic conditions at the time of hiring on future wages. Measured by the labor's user cost, the price of labor is substantially more pro-cyclical than the new-hire wage or the average wage. The strong procyclicality of the price of labor calls for other forces for cyclical labor demand to explain employment fluctuations.
43

Purvance, Jessica Athalia, and Anak Agung Istri Ngurah Marhaeni. "Pengaruh Pertumbuhan Ekonomi, Investasi, Teknologi, Dan Upah Minimum Terhadap Kesempatan Kerja Di Kabupaten/Kota Provinsi Bali." E-Jurnal Ekonomi Pembangunan Universitas Udayana 12, no. 7 (July 14, 2023): 464. http://dx.doi.org/10.24843/eep.2023.v12.i07.p02.

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The purpose of this study is to (1) analyze the joint effects of economic growth, investment, technology and minimum wage on employment opportunities in districts/cities in Bali; (2) Analysis of partial effects of economic growth, investment, technology and minimum wage on employment opportunities in districts/cities in Bali. (3) Analyze the order of impact of economic growth, investment, technology and minimum wage on employment opportunities in districts/cities of Bali. This study is an associative quantitative study using panel data of up to 72 observations. Data sources for this study are secondary data from the Bali Provincial Central Bureau of Statistics and primary data obtained from informants through in-depth interviews. The collected data were then analyzed using several linear regression analysis techniques. Based on the analysis results, it is shown that (1) economic growth, investment, technology and minimum wage simultaneously have a great impact on employment opportunities in provinces/cities in Bali. (2) Economic growth and minimum wages can have a significant positive impact on employment opportunities in provinces/cities of Bali Province. Investments and technology may not affect employment opportunities in districts and cities in Bali. (3) Minimum wage has the greatest impact, followed by economic growth, investment and technology keyword: Economic Growth, Investment, Technology, Minimum Wage, Job Opportunities
44

Safrina, Lia, and Uswatun Hasanah. "Fair Wages in Employment: Islamic Insights into Aceh Province's Minimum Wage." Malikussaleh Social and Political Reviews 4, no. 2 (November 30, 2023): 91. http://dx.doi.org/10.29103/mspr.v4i2.11267.

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The problem of wages is more than just nominal. Other things are important to note, such as the time of payment and the wage component. Likewise, eligibility and fairness must be seen from the mechanism for determining it so that inequality between workers and job providers does not occur. The philosophy of wages as a form of worker protection is needed for government intervention to issue regulations made by the government by setting a minimum limit of salary/wages to be paid by the company to its workers. The Aceh government has set the Provincial Minimum Wage (UMP) to ensure wage equity between workers and job providers. This research is qualitative research that uses secondary data as a data source. The data used is Aceh Governor Regulation No. 560/1539/2022. The data was analyzed by describing the UMP setting system in Aceh and its relevance to the principles of justice, eligibility, and virtue. The results indicated that the setting of Aceh's minimum wage is relevant to the concept of wages in Islam and has fulfilled the principles of wages in Islam based on justice, eligibility, and virtue principles.
45

Bobkov, V. N., and E. V. Odintsova. "The Impact of Wage Levels on the Quality of Employment and Economic Sustainability of Households." Federalism 29, no. 1 (March 31, 2024): 77–95. http://dx.doi.org/10.21686/2073-1051-2024-1-77-95.

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The problem of compliance of the wage level of employees with social standards of living standards, having undoubted regional features, is relevant for all subjects of the Russian Federation. When determining the wage of organizations funded from regional budgets, we believe they should proceed from the general methodological basis for determining its size. In the article is analyzed the situation with the wage level of employees in the sector of organizations, which is the main segment of Russian employment. It has been revealed that the level of wages most strongly affects its quality and is one of the main indicators of precarious employment. The peculiarities of the distribution of employees by wage level are revealed, depending on the level of qualification of employees and their working conditions, taking into account the forms of ownership and the size of organizations. Based on the author’s tools, the analysis of the impact of wage levels on the economic sustainability of households due to (not) achieving socially acceptable and higher standards of living is carried out. It is shown that for more than 80% of employees, the wage level currently does not allow to ensure such standards. A radical increase in the wage level is proposed based on the development of industry-specific social wage standards. This will improve the quality of employment: reduce the scale of precarious employment, link the level of wages with the qualifications of employees and their working conditions, taking into account the characteristics of sectors of the Russian economy, as well as significantly increase the economic sustainability of households.
46

Šuminas, Mykolas. "Effects of minimum wage increases on employment in Lithuania." Ekonomika 94, no. 2 (January 1, 2015): 96–112. http://dx.doi.org/10.15388/ekon.2015.2.8235.

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From the advent of minimum wage it was subject to controversy: economists did not agree on its effects on the state of the economy, the welfare of both firms and workers. Empirical academic literature usually investigates employment reaction to the minimum wage fluctuations. Regrettably, such papers do not exist for Lithuania, so the literature of similar scope and topic of the US and UK (along with several other countries) is explored in this paper.The effect of the Lithuanian real minimum wage on aggregate employment is estimated by using time series models. Dependant on the specification, the real minimum wage elasticity is estimated to be –0.03–0.03 yet statically insignificant in all of the models. The result is in line with the reviewed literature; more precisely most of papers published in mid-1990s and beyond do not register any significant minimum wage effects on employment. The phenomenon is attributed to the fact that firms can exploit other channels (raising prices, hiring more productive employees, etc.) to make adjustments to new, higher wages. The paper does not explore what channels were used by the firms; however, a possible channel of productivity is investigated. Moreover, the temperate minimum wage policy is one of the factors that could have led to the insignificance of minimum wage to employment conclusion: the nominal minimum wage was only raised during the period of economic growth, and during economic downturns and recoveries it was frozen. The claim is further supported by the share of minimum wage earners in respect to total employed and the minimum wage to average wage ratio: the variables were relatively constant from 2005 onwards.
47

Schmieder, Johannes F., and Till von Wachter. "Does Wage Persistence Matter for Employment Fluctuations? Evidence from Displaced Workers." American Economic Journal: Applied Economics 2, no. 3 (July 1, 2010): 1–21. http://dx.doi.org/10.1257/app.2.3.1.

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Previous literature has found that tight labor market conditions during a job raise wages. Using the Displaced Worker Survey from 1984 to 2006, we show that wage gains associated with good labor market conditions disappear at job loss. We also find that workers with higher wages due to tight past labor market conditions face higher risk of layoff. These findings suggest an important role of persistent rigidities in the wage setting process that are related to layoff decisions. This supports the notion that downward rigid employment contracts help explain the Shimer (2005) “puzzle” of low wage relative to employment fluctuations. (JEL J31, J41, J63)
48

Oppenheimer, Robert J. "Employment and Wages in 2017: A Good Year for Aboriginals and Non-Aboriginals in Canada." Journal of Aboriginal Economic Development 11, no. 1 (October 2018): 108–21. http://dx.doi.org/10.54056/yuxg2785.

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Employment, unemployment and wage rates improved for Aboriginals and non-Aboriginals in Canada in 2017. Participation rates remained the same for Aboriginals and slightly increased for non-Aboriginals. All four of these rates, employment, unemployment, participation and wages, are currently and historically more favourable for non-Aboriginals than for Aboriginals. However, when examined by the educational level completed, wage and employment rates are similar. Measures of employment are examined by gender, age, province, economic sector, and education, and for Métis, First Nations and Inuit.
49

Bossler, Mario, and Hans-Dieter Gerner. "Employment Effects of the New German Minimum Wage: Evidence from Establishment-Level Microdata." ILR Review 73, no. 5 (November 22, 2019): 1070–94. http://dx.doi.org/10.1177/0019793919889635.

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The authors present the first evidence on the consequences of the new statutory minimum wage in Germany, which was implemented on January 1, 2015. Using the IAB Establishment Panel, they identify employment effects from variation in the extent that establishments are affected by the minimum wage. A difference-in-differences estimation reveals an increase in average wages between 3.8% and 6.3% and an employment loss by approximately 1.7% in establishments affected by the minimum wage. These estimates imply a labor demand elasticity with respect to wages ranging between −0.2 and −0.4. The authors also observe a transitory reduction of the working hours in the first year after the introduction and that the employment effect seems mostly driven by a reduction in hires rather than by an increase in layoffs.
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Jerger, Jürgen, and Oliver Landmann. "Lohnpolitik und Beschäftigung – Debatte ohne Ende?" Perspektiven der Wirtschaftspolitik 3, no. 2 (May 2002): 207–24. http://dx.doi.org/10.1111/1468-2516.00087.

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Abstract This paper takes a fresh look at the often confused - and therefore confusing - debate on the role of wage policy in tackling Germany's unemployment problem. The key issues in this debate are the relative importance of wages and aggregate demand in the determination of employment, the appropriate behavior of wages in relation to productivity growth, and the significance of the purchasing power effect of wages. We argue that the most useful tool to address and resolve these issues is the basic textbook model of aggregate supply and aggregate demand. Most importantly, the model predicts that employment is governed by the ratio of aggregate nominal demand and the nominal wage level. The empirical picture strongly supports this assertion. In contrast, the relation between the rate of wage growth and the rate of productivity growth does not play the causal role in determining employment that is widely attributed to it.

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