The Role of Risk Preference in Immigration and Minimum Wage Policies

2014 ◽  
Vol 14 (4) ◽  
pp. 1709-1724
Author(s):  
Yulian Wang ◽  
Hongfei Zhu
Keyword(s):  
Minimum Wage ◽  
Wage Rate ◽  
Illegal Immigration ◽  
Risk Preference ◽  
Illegal Immigrants ◽  
Wage Policy ◽  
Minimum Wage Legislation ◽  
Employment Elasticity ◽  
Enforcement Policies

Abstract This paper examines the effects of two enforcement policies and a minimum wage policy in controlling illegal immigration and improving welfare when capital is immobile. The model highlights the importance of the role of risk preference by considering various attitudes to risk held by illegal immigrants and host firms. It is shown that the effect of internal enforcement on the wage rate in host firms depends on the attitude to risk of illegal immigrants and host firms. It is also shown that the impacts of the minimum wage legislation differ according to risk preference and the degree of labor employment elasticity to the source wage. Moreover, attitude to risk is shown to be important in determining the effectiveness of policies on welfare.

scholarly journals The Assemblage of Power: The Role of The State in Minimum Wage Policy in Indonesia

2021 ◽  
Author(s):  
◽  
Wahyu Adiningtyas
Keyword(s):  
Minimum Wage ◽  
Industrial Relations ◽  
International Market ◽  
Safety Net ◽  
Division Of Labour ◽  
The State ◽  
Wage Policy ◽  
Role Of The State ◽  
World Systems Analysis

<p>The minimum wage is an essential issue for workers in Indonesia. Employers still apply the minimum wage to all workers, regardless of their experience. Further, the calculation of the minimum wage is still based on an estimate for single workers. This calculation can mean that a worker is unable to meet the daily needs of their dependent family. Workers in Indonesia are trapped in debt and poverty. The minimum wage in Indonesia is intended as a safety net to prevent workers from falling into poverty, with workers’ welfare the responsibility of the state.  This study aims to examine the role of the state in determining the minimum wage policy. The outcomes of this process cannot be separated from the strength of workers and employers to communicate their interests. As a semi-peripheral country within the international division of labour, the minimum wage policy in Indonesia is influenced by the interests of international capital. This qualitative study uses the capitalist state theories of Miliband, Poulantzas, and Jessop to examine the role of the state and worker-employer relations, and the influence of the international market on determining minimum wage policy in Indonesia -with world-systems analysis also drawn on to investigate the international market context.  Overall, this study proves that wage rates are the result of the struggle of the agency, i.e. workers, employers, and government personnel through various institutions, regulatory products and laws. The various regulations and institutions of the state ensure that the struggle between these interest groups takes place in a way that does not endanger capitalism as the prevailing economic and political system. For workers, the struggle for increased wages occurs at two levels. Firstly through tripartite institutions -Institutions where workers, employers and government representatives negotiate wages and other industrial relations issues- and laws that are created by the state to limit struggles around the wage rate. Secondly, through a larger, democratic space in strikes or demonstrations are staged. Employers mostly pursue their interests through parliamentary, tripartite institutions and through occupying prominent positions in government structures. International markets affect the determining of wage policy through the actions of international and regional institutions that provide access to overseas debt, and who stipulate the conditions to be followed by the Indonesian government in receipt of this debt.</p>

scholarly journals An incomplete breakthrough

2018 ◽  
Vol 9 (1) ◽  
pp. 73-96
Author(s):  
Qiuyin Hu
Keyword(s):  
Collective Bargaining ◽  
Minimum Wage ◽  
German Law ◽  
Wage Setting ◽  
Member States ◽  
Minimum Wage Legislation ◽  
Wage Floor ◽  
The Eu

This article reflects on how appropriately the German Minimum Wage Act— the latest national minimum wage legislation within the EU— has been constructed so as to remedy the fading role of collective bargaining in wage setting and curb the increasing in-work poverty across the country. Based on identifying four fundamental parts of a minimum wage regime, it examines successively the corresponding provisions in the German law, with frequent comparisons with the legislation of several other Member States. It is found that Germany has refrained from learning the positive legislative experiences of its EU counterparts, and has developed a minimum wage regime that is distinct in more than one aspect. Such a wage floor, however, loses efficiency and momentum before serving the original purposes of its own introduction.

scholarly journals STANDAR PENGUPAHAN DALAM EKONOMI ISLAM (Studi Kritis atas Pemikiran Hizbut Tahrir)

UNIVERSUM ◽  
2016 ◽  
Vol 9 (1) ◽  
Author(s):  
Ahmad Syakur
Keyword(s):  
Minimum Wage ◽  
Wage Rate ◽  
Islamic State ◽  
Wage Policy ◽  
Industrial Economy ◽  
Islamic Movement ◽  
Wage Rates ◽  
The Government

The labour and wage problems is one of central issues in the contemporary industrial economy. Wagework is the leading provider of tax-advantage consumer directed health, commuter and other employee benefi t. In order to compromise between employee and employer interest, the government set a minimum regional wage. Minimum wage policy in Indonesia is set based an a survey of decent living needs. Hizbut Tahrir is one of Islamic movement that calls to return to the practise of Islam in the all of life sides. Then, Hizbut Tahrir concerns to study of Islamic economy, especially the economy of Islamic state and public fi nance. Hizbut Tahrir has different opinion with other moslem economic about standard wage rates. Standard wage rates – refers Hizbut Tahrir opinions- is only based the work utility of labor. The basic living needs cannot be the standard of wage. The wage rate is prerogative right of employee and employer, described a agreement based the utility of work. This opinion different with mainstream moslem economic. According to maintreams moslem economic, standard of wage not only based work utility of labor, but also based decent living needs.Keyword: Standard, wage, living needs, Islamic economy

scholarly journals Inter-city Variation in Prices

2008 ◽  
Vol 47 (4II) ◽  
pp. 877-892 ◽  
Author(s):  
Sonia Ahmad ◽  
Ahmed Gulzar
Keyword(s):  
Minimum Wage ◽  
Local Economy ◽  
Cost Of Living ◽  
Real Wages ◽  
Wage Policy ◽  
Migration Patterns ◽  
Urban Inequality ◽  
Minimum Wage Legislation ◽  
The Government ◽  
Over Time

This research has been motivated by the fact that inter-city variation in prices and hence cost of living has implications for many aspects of development and public policy. This is true for all countries and especially for developing countries like Pakistan where one would expect differences in cost of living to be more pronounced (ceterus paribus) due to a relatively underdeveloped transport network and a lack of development of a national common market. A better understanding of the inter-city variation in prices indicates the extent to which markets within countries are integrated. A monitoring of the inter-city price index over time indicates whether the economy as a whole has become more or less integrated over time i.e. has there has been convergence or divergence within the local economy (which has also been one of the objectives of this research). Secondly, a quantification of inter-city variation in cost of living is essential to understand differentials in real incomes across the country. Such an understanding will yield fairer minimum wage legislation by the government and also wage remuneration packages by employers in both the public and private sectors operating in multiple cities thus leading to better equalisation of real wages across locations. As noted by Haworth and Rasmussen (1973) the pursuit of a uniform wage policy by the U.S. Post Office in the 1970s led to greater wage dissatisfaction among workers and labor strikes in areas where cost of living was relatively higher. Thirdly, allowing for cost of living differentials among cities will lead to better estimates of urban inequality and incidence of poverty. In this context it is particularly important to see if differences in cost of living mitigate or accentuate the difference in the magnitude of poverty between richer and poor jurisdictions. The estimation of cost of living differentials will also lead to much greater understanding of migration patterns within countries and the functioning of regional and interregional markets across the country which are directly related to cost of living, and real wages/incomes. For example, if the same minimum wage legislation is applicable to the whole country, it will lead to migration to those cities where cost of living is relative low and hence the real value of the minimum wages is high (ceterus paribus). This illustrates the important implications that uniform minimum wage legislation and welfare packages across the country have for migration patterns when cost of living differentials are significant.

Wages, Salary, and Remuneration—Towards a Social Wage

2020 ◽  
pp. 128-164
Author(s):  
Zoe Adams
Keyword(s):  
Twentieth Century ◽  
Minimum Wage ◽  
Relational Model ◽  
Fourth Section ◽  
The Third ◽  
Contract Of Employment ◽  
Minimum Wage Legislation ◽  
Wage Regulation ◽  
Social Wage

This chapter traces the development of minimum wage legislation through the early to mid-twentieth century. It demonstrates the significance of the concept of ‘remuneration’ in shaping the legal environment in which workers’ right to payment was coming to be conceived. The first section begins with a discussion of this concept, tracing it from its origins in the concept of the salary. The second section builds on this analysis to explore the role of these concepts—the wage, the salary, and remuneration—in experiments in wage regulation. The third section explores the link between these different concepts and the emerging relational model of the contract of employment. The fourth section shows how these changes influenced the way in which minimum wage legislation came to be conceived in the mid-twentieth century, particularly in the context of the wages councils system of the 1940s. The fifth section then explores the broader implications of these changes, returning to the example of dock work and the various ‘decasualization’ policies of the era.

scholarly journals The Assemblage of Power: The Role of The State in Minimum Wage Policy in Indonesia

2021 ◽  
Author(s):  
◽  
Wahyu Adiningtyas
Keyword(s):  
Minimum Wage ◽  
Industrial Relations ◽  
International Market ◽  
Safety Net ◽  
Division Of Labour ◽  
The State ◽  
Wage Policy ◽  
Role Of The State ◽  
World Systems Analysis

<p>The minimum wage is an essential issue for workers in Indonesia. Employers still apply the minimum wage to all workers, regardless of their experience. Further, the calculation of the minimum wage is still based on an estimate for single workers. This calculation can mean that a worker is unable to meet the daily needs of their dependent family. Workers in Indonesia are trapped in debt and poverty. The minimum wage in Indonesia is intended as a safety net to prevent workers from falling into poverty, with workers’ welfare the responsibility of the state.  This study aims to examine the role of the state in determining the minimum wage policy. The outcomes of this process cannot be separated from the strength of workers and employers to communicate their interests. As a semi-peripheral country within the international division of labour, the minimum wage policy in Indonesia is influenced by the interests of international capital. This qualitative study uses the capitalist state theories of Miliband, Poulantzas, and Jessop to examine the role of the state and worker-employer relations, and the influence of the international market on determining minimum wage policy in Indonesia -with world-systems analysis also drawn on to investigate the international market context.  Overall, this study proves that wage rates are the result of the struggle of the agency, i.e. workers, employers, and government personnel through various institutions, regulatory products and laws. The various regulations and institutions of the state ensure that the struggle between these interest groups takes place in a way that does not endanger capitalism as the prevailing economic and political system. For workers, the struggle for increased wages occurs at two levels. Firstly through tripartite institutions -Institutions where workers, employers and government representatives negotiate wages and other industrial relations issues- and laws that are created by the state to limit struggles around the wage rate. Secondly, through a larger, democratic space in strikes or demonstrations are staged. Employers mostly pursue their interests through parliamentary, tripartite institutions and through occupying prominent positions in government structures. International markets affect the determining of wage policy through the actions of international and regional institutions that provide access to overseas debt, and who stipulate the conditions to be followed by the Indonesian government in receipt of this debt.</p>

scholarly journals DETERMINANTS OF SCHOOL ENROLMENT IN INDONESIA: THE ROLE OF MINIMUM WAGE

2021 ◽  
Vol 24 (2) ◽  
pp. 181-204
Author(s):  
Dyah Savitri Pritadrajati
Keyword(s):  
Secondary School ◽  
Minimum Wage ◽  
Low Income ◽  
Substitution Effect ◽  
Drop Out ◽  
Educational Investment ◽  
School Enrolment ◽  
Minimum Wage Legislation ◽  
Senior Secondary

This paper investigates the role of minimum wages in determining school enrolment (educational investment) in Indonesia using the National Socioeconomic Survey (Susenas). It finds that minimum wage legislation has a negative and significant substitution effect on educational investment. Individuals are more likely to drop out of senior secondary school as a result of a minimum wage legislation. Even though the response among low-income households is positive, this result may be generated by a fall in the probability of obtaining low-skilled employment, which offset the substitution effect.

Risk Preference Elicitation and the Role of Personality and Intelligence

2009 ◽  
Author(s):  
Tanja F. Blackstone ◽  
Jerry C. Crabb ◽  
Frederick L. Oswald
Keyword(s):  
Risk Preference ◽  
Preference Elicitation
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