Wage pressures may arrest future development in Mexico

2016 ◽  
Keyword(s):  
Economic Growth ◽  
Minimum Wage ◽  
Future Development ◽  
Real Wage ◽  
Political Pressure ◽  
Content Type ◽  
Labour Costs ◽  
Wage Increases ◽  
Productivity Gains

Subject Wages and development in Mexico. Significance Mexico's labour costs have been rising since 2015, particularly in some manufacturing activities, and political pressure is increasing for a substantial minimum wage hike. For exporting sectors, the significant peso depreciation has meant a substantial boost in wage competitiveness. However, there are no significant productivity gains that warrant such rises. Impacts A peso appreciation would erode wage competitiveness, even if a strengthening to pre-2014 levels is unlikely. Despite political pressures, no out-of-calendar minimum wage increases are likely for the rest of the Pena Nieto administration. Real wage increases should not affect on inflation given subdued economic growth.

The cultural dividend: a hidden source of economic growth in emerging countries

2017 ◽  
Vol 24 (4) ◽  
pp. 590-616 ◽  
Author(s):  
Shaomin Li ◽  
Seung Ho Park ◽  
David Duden Selover
Keyword(s):  
Economic Growth ◽  
Labor Productivity ◽  
Productivity Growth ◽  
Large Scale ◽  
Cultural Factors ◽  
Content Type ◽  
Economic Productivity ◽  
Large Scale Data ◽  
Productivity Gains

Purpose The purpose of this paper is to develop the theoretical linkage between culture and economic growth and empirically test the relationship by measuring culture and how it affects labor productivity. Design/methodology/approach This study uses a cross-section study of developing countries and regresses economic productivity growth on a set of control variables and cultural factors. Findings It is found that three cultural factors, economic attitudes, political attitudes, and attitudes towards the family, affect economic productivity growth. Originality/value Many economists ignore culture as a factor in economic growth, either because they discount the value of culture or because they have no simple way to quantify culture, resulting in the role of culture being under-researched. The study is the first to extensively examine the role of culture in productivity growth using large-scale data sources. The authors show that culture plays an important role in productivity gains across countries, contributing to the study of the effects of culture on economic development, and that culture can be empirically measured and linked to an activity that directly affects the economic growth – labor productivity.

The Quest for Fairness in Australian Minimum Wages

2011 ◽  
Vol 53 (5) ◽  
pp. 662-680 ◽  
Author(s):  
Joshua Healy
Keyword(s):  
Minimum Wage ◽  
Real Wage ◽  
Industrial Relations ◽  
Minimum Wages ◽  
National System ◽  
Relative Wages ◽  
Rate Of Increase ◽  
Worthy Goal ◽  
Wage Increases ◽  
Over Time

The attainment of ‘fairness’ is widely regarded as a worthy goal of setting minimum wages, but opinions differ sharply over how to achieve it. This article examines how interpretations of fairness shaped the minimum wage decisions of the Australian Industrial Relations Commission between 1997 and 2005. It explores the Commission's approaches to three aspects of fairness in minimum wages: first, eligibility for increases; second, the form of increase; and third, the rate of increase over time. The Australian Industrial Relations Commission consistently gave minimum wage increases that were expressed in dollar values and applied to all federal awards. Its decisions delivered real wage increases for the lowest paid, but led to falls in real and relative wages for the majority of award-reliant workers. Fair Work Australia, the authority now responsible for setting minimum wages in the national system, appears apprehensive about parts of the Australian Industrial Relations Commission's legacy and has foreshadowed a different approach, particularly with respect to the form of adjustment.

scholarly journals Auf der Speisekarte der DPAG: Rechtliche oder ökonomische Marktzutrittsschranken?

2009 ◽  
Vol 60 (1) ◽  
Author(s):  
Thomas Wein
Keyword(s):  
Political Parties ◽  
Economic Analysis ◽  
Minimum Wage ◽  
Economies Of Scale ◽  
Labour Costs ◽  
Postal Services ◽  
Minimum Wage Legislation ◽  
Wage Increases ◽  
The Cost ◽  
Industrial Economic

SummaryThe liberalization of the German Markets for postal services which have been realized with the beginning of 2008 was politically combined with the introduction of minimum wage legislation. This minimum wage increases the labour costs of the competitors without reaching the cost level of the incumbent. The industrial economic analysis shows that the minimum wage is able to prevent market entries. But the minimum wage legislation is under attack by administrative courts and some political parties. Hence, it is possible that the minimum wage for postal services will be shortly abolished. An alternative to the minimum wage could be the using of existing economies of scale and scope by the incumbent to squeeze the competitors out of the market.

Wage politics across South-east Asia will diverge

2016 ◽  
Keyword(s):  
East Asia ◽  
Minimum Wages ◽  
South East Asia ◽  
Domestic Consumption ◽  
Content Type ◽  
Labour Costs ◽  
Wage Increases ◽  
The Impact

Subject Wage politics in South-east Asia. Significance In July, Malaysia will raise the mimimum wage by 11-15%. The country is one of five in South-east Asia, along with Indonesia, Thailand, Cambodia and Myanmar, increasing minimum wages in 2016. Impacts Labour costs in Vietnam are rising faster than in Indonesia, its primary competitor in the region. Non-compliance will limit the impact of recent increases on domestic consumption. A sizeable part of the ASEAN workforce is informally employed and is, therefore, unaffected by wage increases.

scholarly journals Minimum wage change effects on restaurant pricing and employment

2018 ◽  
Vol 30 (3) ◽  
pp. 1545-1562 ◽  
Author(s):  
Toni Repetti ◽  
Susan Roe
Keyword(s):  
Minimum Wage ◽  
Local Governments ◽  
Wage Change ◽  
Content Type ◽  
Food And Beverage ◽  
State And Local ◽  
Wage Increases ◽  
Relative Change ◽  
The Impact ◽  
Restaurant Owners

Purpose State and local governments are considering large increases to the minimum wage. As restaurants employ many individuals paid at or below minimum wage, these changes may affect their businesses. The purpose of this study is to evaluate the anticipated effects of minimum wage growth on employment and pricing in US food and beverage operations. Design/methodology/approach The study utilizes an experimental design where restaurant owners and managers are presented with scenarios of differing levels of potential minimum wage increases and are asked to anticipate changes to employment and pricing. Findings Restaurant owners and managers involved in the study indicate the level of the minimum wage increase will significantly affect changes in pricing and employment levels. Results also show that restaurant demographics such as type of restaurant and average check do not significantly affect the relative change operators anticipate implementing. Specific ways participants plan to make adjustments are also presented. Originality/value The anticipated impact of minimum wage increases at the restaurant level is examined, which differs from previous studies that determine the impact at the industry level. This study evaluates large minimum wage increases of up to 100 per cent, which have previously not been studied.

Bangladesh will mostly resist garment workers’ demands

2019 ◽  
Keyword(s):  
Economic Growth ◽  
Environmental Impact ◽  
Emerging Markets ◽  
Minimum Wage ◽  
Prime Minister ◽  
Fast Fashion ◽  
Content Type ◽  
Garment Workers ◽  
Union Leaders ◽  
Consecutive Term

Subject Labour unrest in Bangladesh's garment sector. Significance Union leaders earlier this month said several thousand garment workers had been sacked after recent strikes demanding higher wages, which came despite an increase in the minimum wage. Prime Minister Sheikh Hasina’s Awami League (AL) government, which won a third consecutive term following December’s general election, is relying on a robust ready-made garments sector to help drive economic growth. Impacts Dhaka will benefit from China-US trade rivalry, drawing more US buyers for Bangladesh’s ready-made garments. Bangladesh will increase garment exports to emerging markets such as Turkey and Russia. Globally, there will be rising awareness of the environmental impact of 'fast fashion'.

Variations in economic growth across states in Malaysia: an exploratory analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yusniliyana Yusof ◽  
Kaliappa Kalirajan
Keyword(s):  
Economic Growth ◽  
Socioeconomic Development ◽  
Secondary Data ◽  
State Level ◽  
Bootstrap Sampling ◽  
Content Type ◽  
Estimation Techniques ◽  
Development Index ◽  
Three Stage Least Squares ◽  
Development Gap

PurposeThe study contributes to the aim of regional development policy in reducing regional disparities, by examining the spatial balance in socioeconomic development across the states of Malaysia based on composite development index (CDI). Besides, the study has attempted to understand the issues in the development gaps across Malaysian states by evaluating the factors that explain the variation in economic growthDesign/methodology/approachThis study uses three-stage least squares (3SLS) and bootstrap sampling and estimation techniques to examine the factors that explain the variations in the growth of development across the states in Malaysia. The analysis involves 13 states in Malaysia (Johor, Melaka, Negeri Sembilan, Pulau Pinang, Perak, Perlis, Selangor, Kedah, Kelantan, Pahang, Terengganu, Sabah and Sarawak) from 2005 to 2015.FindingsThe pattern in the spatial socioeconomic imbalance demonstrates a decreasing trend. However, the development index reveals that the performance of less developed states remained behind that of the developed states. The significant factors in explaining the variation in growth across the Malaysian states are relating to agriculture, manufacturing, human capital, population growth, Chinese ethnicity, institutional factors and natural resources.Research limitations/implicationsThe authors focused on Malaysian states over the period between 2005 and 2015. The authors encountered some limitations in obtaining relevant data such as international factors and technological change that might also explain the variation in economic growth as the data on these variables are not reported at the state level. Moreover, the data on GSDP by sector was only available from the year 2005. Second, the study is based on secondary data. Future studies might examine the factors that contribute to the development gap across Malaysian states through interviews or questionnaires and compare the findings with the existing results. Despite its limitations, this study contributes to the existing literature that emphasizes on spatial balance of socioeconomic in a developing country, focusing on Malaysian states.Practical implicationsThese findings provide guidance for policymakers by understanding key potential areas to reduce the disparity in economic growth across Malaysian states by understanding their impact on the growth.Originality/valueThis study employs different method of 3SLS and bootstrap sampling and estimation techniques in examining the factors that explain the variations in the growth of development across the states in Malaysia.

Government spending shocks and economic growth: additional evidence from cyclical behavior of fiscal policy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olumide Olusegun Olaoye ◽  
Ukafor Ukafor Okorie ◽  
Oluwatosin Odunayo Eluwole ◽  
Mahmood Butt Fawwad
Keyword(s):  
Economic Growth ◽  
Business Cycle ◽  
Government Spending ◽  
Generalized Method Of Moments ◽  
The State ◽  
Fiscal Policies ◽  
Asymmetric Effect ◽  
Content Type ◽  
Spending Shocks ◽  
The Business Cycle

PurposeThis study examines the asymmetric effect of government spending on economic growth in Nigeria over the period 1980–2017. Specifically, this study investigates whether the response of economic growth to government spending shocks differs according to the nature of shocks on them. In addition, the authors examine whether the stabilizing effects of fiscal policies are dependent on the state of the business cycle.Design/methodology/approachThe study adopts the linear fiscal reaction function in addition to the nonlinear regression model of Hatemi-J (2011, 2012), Granger and Yoon (2002), which allows us to separate negative shocks from positive shocks to government spending. Similarly, the authors adopt the generalized method of moments (GMM) techniques of Hansen (1982) to account for simultaneity and endogeneity problems inherent in dynamic model.FindingsThe authors’ findings reveal that there is evidence of asymmetry in the government spending–economic growth nexus in Nigeria over the period of study. Specifically, the authors find that the response of economic growth to government spending shocks differs according to the nature of shocks on them. More specifically, the study established that the stabilizing effects of fiscal policies are dependent on the state of the business cycle.Originality/valueUnlike the traditional method of modeling asymmetry, which adopts the simple inclusion of a squared government spending term or by the inclusion of a cubic government spending term, the model adopted in this study allows us to model shocks and show how the responses of economic growth to government expenditure differ according to the nature of shocks on them.

China’s shadow banking sector: beneficial or harmful to economic growth?

2015 ◽  
Vol 7 (4) ◽  
pp. 421-445 ◽  
Author(s):  
James R. Barth ◽  
Tong Li ◽  
Wen Shi ◽  
Pei Xu
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Commercial Banking ◽  
Global Perspective ◽  
Shadow Banking ◽  
Content Type ◽  
Wide Range ◽  
Recent Developments ◽  
Major Factors ◽  
Made In

Purpose – The purpose of this paper is to examine recent developments pertaining to China’s shadow banking sector. Shadow banking has the potential not only to be a beneficial contributor to continued economic growth, but also to contribute to systematic instability if not properly monitored and regulated. An assessment is made in this paper as to whether shadow banking is beneficial or harmful to China’s economic growth. Design/methodology/approach – The authors start with providing an overview of shadow banking from a global perspective, with information on its recent growth and importance in selected countries. The authors then focus directly on China’s shadow banking sector, with information on the various entities and activities that comprise the sector. Specifically, the authors examine the interconnections between shadow banking and regular banking in China and the growth in shadow banking to overall economic growth, the growth in the money supply and the growth in commercial bank assets. Findings – Despite the wide range in the estimates, the trend in the size of shadow banking in China has been upward over the examined period. There are significant interconnections between the shadow banking sector and the commercial banking sector. Low deposit rate and high reserve requirement ratios have been the major factors driving its growth. Shadow banking has been a contributor, along with money growth, to economic growth. Practical implications – The authors argue that shadow banking may prove useful by diversifying China’s financial sector and providing greater investments and savings opportunities to consumers and businesses throughout the country, if the risks of shadow banking are adequately monitored and controlled. Originality/value – To the authors’ knowledge, this paper is among the few to systematically evaluate the influence of shadow banking on China’s economic growth.

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