scholarly journals Assessing Minimum Wage Policy Implications upon Income Inequalities. The Case of Romania

2019 ◽  
Vol 11 (9) ◽  
pp. 2542
Author(s):  
Eva Militaru ◽  
Madalina Ecaterina Popescu ◽  
Amalia Cristescu ◽  
Maria Denisa Vasilescu
Keyword(s):  
Income Distribution ◽  
Minimum Wage ◽  
Sustainable Growth ◽  
Policy Implications ◽  
Wage Distribution ◽  
Distribution Analysis ◽  
Wage Policy ◽  
Income Inequalities ◽  
Wage Earners ◽  
The Impact

Starting from the consideration that excessive income inequalities could hamper sustainable growth, our paper aims to evaluate the impact of the minimum wage policy upon wage and income distributions. Using the European Union Survey on Income and Living Conditions (EU-SILC) database with national representative sample of households, an income distribution analysis was conducted for the case of Romania based on two microsimulation approaches. The first one assumed building a counterfactual income distribution under the hypothesis of no change in minimum wage, while the second one implied a decomposition of the Gini coefficient of income inequalities based on main income determinants, including the minimum wage level and the share of minimum wage earners in the total number of employees. Both approaches pointed to similar findings, indicating a positive effect of the minimum wage on wage inequalities reduction for both genders, although higher for women, as they are more present among lower paid employees. The minimum wage policy can reshape the wage distribution, by enlarging the share of minimum income earners and narrowing the middle. Moreover, the household disposable income becomes less unequal when minimum wage increases, meaning that the income gain spreads over the entire household as most minimum wage earners come from poor households with numerous children.

scholarly journals The impact of a minimum wage change on the distribution of wages and household income

2020 ◽  
Author(s):  
Paul Redmond ◽  
Karina Doorley ◽  
Seamus McGuinness
Keyword(s):  
Income Distribution ◽  
Minimum Wage ◽  
Wage Inequality ◽  
Household Income ◽  
Spillover Effects ◽  
Wage Distribution ◽  
Wage Increase ◽  
Minimum Wage Increase ◽  
Wage Change ◽  
The Impact

Abstract We use distribution regression analysis to study the impact of a 6% increase in the Irish minimum wage on the distribution of hourly wages and household income. Wage inequality, measured by the ratio of wages in the 90th and 10th percentiles and the 75th and 25th percentiles, decreased by approximately 8 and 4%, respectively. The results point towards wage spillover effects up to the 30th percentile of the wage distribution. We show that minimum wage workers are spread throughout the household income distribution and are often located in high-income households. Therefore, while we observe strong effects on the wage distribution, the impact of a minimum wage increase on the household income distribution is quite limited.

scholarly journals Saving Industry of Garments Solid Works In West Java (Review of SE and SK Determination Policy on West Java UMK in 2020)

2020 ◽  
Vol 3 (2) ◽  
pp. 93
Author(s):  
Muhamad Rizal ◽  
Anang Muftiadi
Keyword(s):  
High Pressure ◽  
Minimum Wage ◽  
Investment Climate ◽  
Wage Policy ◽  
West Java ◽  
Low Education ◽  
Solid Works ◽  
The Impact

It has become a common tradition that in November every year, each Governor is obliged to set a UMP and can (not must) determine Regental/Municipal Minimum Wage (UMK). This is regulated by PP 78 of 2015 concerning Wages. This wage policy regulates the minimum wage that must be paid by employers to all workers without exception. Every year, this wage arrangement has become a problem for the industry, especially labor-intensive industries. This industry contributed to employment for people who had only low education around the company and its supporting areas. However, wages that were getting higher each year caused companies to enter the non-compliment category of buyers. This choice was what caused many companies to relocate or permanently disband their companies. Deferral of payment was not a solution for the company. In fact, it dragged them to bankruptcy. Governor of West Java’s SE No. 561/75/Yanbangsos/2019 concerning the Implementation of MSEs in West Java had become a breath of fresh air for the investment climate in West Java. However, this SE did not last long because of the high pressure of interest on the Governor of West Java. This article was carried out to analyze the impact of the revocation of the SE and the change to a decree, which stagnated the industry and reduced its production resulting in massive layoffs in several Regencies and Cities in West Java.

The Migratory Impact of Minimum Wage Legislation: Puerto Rico, 1970–1987

1993 ◽  
Vol 27 (4) ◽  
pp. 772-795
Author(s):  
Carlos E. Santiago
Keyword(s):  
United States ◽  
Puerto Rico ◽  
Minimum Wage ◽  
Labor Migration ◽  
Capital Investment ◽  
The United States ◽  
Multiple Time ◽  
Wage Setting ◽  
Wage Policy ◽  
The Impact

Minimum wage research has historically focused on labor mobility between covered and uncovered labor markets within a geographic area. This study examines the impact of minimum wage setting on labor migration. A multiple time series framework is applied to monthly data for Puerto Rico from 1970–1987. The results show that net emigration from Puerto Rico to the United States fell in response to significant changes in the manner in which minimum wage policy was conducted, particularly after 1974. The extent of commuter type labor migration between Puerto Rico and the United States is influenced by minimum wage policy, with potentially important consequences for human capital investment and long-term standards of living.

Productive contribution of local and foreign workers in Singapore manufacturing industries

2016 ◽  
Vol 43 (3) ◽  
pp. 380-399 ◽  
Author(s):  
Shandre Mugan Thangavelu
Keyword(s):  
Panel Data ◽  
Capital Investment ◽  
Manufacturing Sector ◽  
Sustainable Growth ◽  
Policy Implications ◽  
Foreign Workers ◽  
Content Type ◽  
Industry Level ◽  
Manufacturing Productivity ◽  
The Impact

Purpose – The purpose of this paper is to study the impact of large inflow of foreign workers on the Singapore manufacturing productivity using a panel data at the disaggregated industry level from 1998 to 2008. The results indicate that foreign workers do make productive contribution to manufacturing productivity, but it is much lower as compared to local workers. However, the author observe the declining capital-labour ratio with the increase in the flow of foreign workers. This is expected to have direct impact on the competitiveness of the manufacturing in the export market. Since new technologies are embodied in new capital investment, the declining capital-labour ratio indicates that workers might be producing output with less technology-intensive capital. Conversely, local workers are more productive with high capital investment, indicating that local workers are more skilled and hence there is more complementarity between capital investments and local human capital. Design/methodology/approach – The author implement a panel estimation of disaggregated industry level data of Singapore manufacturing from 1998 to 2008. The author use GMM estimation to control for any endogeneity issues in the estimation. Findings – The results indicate that foreign workers do make productive contribution to manufacturing productivity; but it is much lower as compared to local workers. However; the author observe the declining capital-labour ratio with the increase in the flow of foreign workers. Research limitations/implications – The data for foreign workers at the disaggregated level is not publically available and this is given for this research purpose. The data for foreign workers is limited as it does not have by educational levels. Practical implications – This is the first paper to study impact of foreign workers on manufacturing sector at a disaggregated panel data. There are important policy implications for managing foreign workers and achieving sustainable growth for the Singapore economy. Social implications – The welfare and social impacts of foreign workers on the Singapore economy is discussed. There is also the issue of policy calibration to balance the flow of foreign workers in the Singapore economy. Originality/value – This is the first paper to study impact of foreign workers on manufacturing sector at a disaggregated panel data.

The Impact of Social Policies on Income Distribution and the Labour Market in Italy

1985 ◽  
Vol 14 (3) ◽  
pp. 385-401 ◽  
Author(s):  
Carmela D'Apice ◽  
Alessandra Del Boca
Keyword(s):  
Income Distribution ◽  
Well Being ◽  
Social Policies ◽  
Industrialized Countries ◽  
Unequal Treatment ◽  
Salaried Workers ◽  
Wage Earners ◽  
Social Expenditures ◽  
The Impact ◽  
The Needy

AbstractItalian social policies are divided between insurance and public assistance, an ambivalence that occasionally results in unequal treatment of equals and discriminatory distribution of benefits. Though expansion of social expenditures slowed after 1975, social programmes did not suffer real cuts until 1983. The effect of social policies on poverty is not direct: most recent changes in the income distribution reflect the effects of recession. Though the Italian share of GDP officially allocated to social expenditures is still below the average of that in other industrialized countries, resources available to the needy are understated because of informal channels within the institutional system. Although the data on income distribution are inadequate, improvements can be discerned in the lowest decile owing to transfer policies targeted on families during the 1970s. In general, the equalizing policies championed by the unions in the 1970s have improved the well-being of wage earners and salaried workers, as well as pensioners.

scholarly journals The Impact of Minimum Wage Policy on Small Medium Enterprises' Productivity in the Manufacturing Sector

2016 ◽  
Vol 1 (1) ◽  
pp. 78-83
Author(s):  
Ung Leng Yean ◽  
Tee Peck Ling ◽  
Chung Chay Yoke ◽  
Jayamalathi Jayabalan ◽  
Pok Wei Fong ◽  
...  
Keyword(s):  
Minimum Wage ◽  
Manufacturing Sector ◽  
Labour Productivity ◽  
Wage Policy ◽  
Operational Costs ◽  
Manufacturing Sectors ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
The Impact ◽  
Descriptive Method

Objective - This study's aim is to identifies the minimum wage policy implementation and its impact on SMEs in Malaysia. It addresses the question of the level of SME's awareness and their readiness towards the implementation of the policy and improving productivity. Methodology/Technique - Data were collected through questionnaire distribution and literature study.Analysis was conducted via a descriptive method. Findings - The solutions identified in addressing the problem include the need to increase labour productivity, lower operational costs and change organizational methods. Novelty - The discussions of this paper provide an in-depth understanding of the issues related to how the policy affects company's competitive advantage and financial performance. Type of Paper: Empirical Keywords: Minimum Wage Policy; Malaysia; SMEs, Manufacturing Sectors; Productivity.

Industry perspectives on Malaysian hotel minimum wage issues

2020 ◽  
Vol 12 (2) ◽  
pp. 185-197
Author(s):  
Ann Selvaranee Balasingam ◽  
Kashif Hussain ◽  
Alwie Manaf
Keyword(s):  
Minimum Wage ◽  
Turnover Intentions ◽  
Negative Impact ◽  
Positive Impact ◽  
Employee Productivity ◽  
Structured Interviews ◽  
Wage Policy ◽  
Content Type ◽  
Hotel Managers ◽  
The Impact

Purpose The purpose of this paper is to investigate and compare the impact of the minimum wage order from the perspectives of two different stakeholders, namely, hotel managers and employees, in the Malaysian hotel industry. Design/methodology/approach For the study, qualitative data were collected through semi-structured interviews from three managers and three employees from hotels in West Malaysia. Findings From the managers’ perspective, minimum wage implementation has resulted in managers adopting the best payment structure to reduce labour costs for the operators, deciding to reduce the service charge allocation to employees and having to deal with minimal improvement in employee productivity and motivation. In contrast, the positive impact from the managers’ perspective is lower turnover intentions and social justice for foreign workers. From the employees’ perspective, there is a rather negative impact – minimum wage policy has resulted in a minimal increase in the salary. From a positive perspective, employees said that they have experienced an improvement in living standards. Originality/value This research presents current responses from hotel participants regarding the latest wage increase impact, some six years after its implementation.

Wynagrodzenie minimalne a ubóstwo, nierówności dochodowe i bezrobocie w Polsce

2016 ◽  
pp. 87-100
Author(s):  
Aneta Mikuła
Keyword(s):  
Income Inequality ◽  
Minimum Wage ◽  
Policy Instrument ◽  
Social Consequences ◽  
Economic Effects ◽  
Labor Costs ◽  
Average Salary ◽  
Wage Policy ◽  
Social Functions ◽  
The Impact

The minimum wage is the wage policy instrument, entailing both economic and social consequences. Supporters of the minimum wage emphasize its role in reducing poverty and reducing income inequalities. In turn, opponents focus on its economic effects, i.e. increase in labor costs and decline in employment. The article focuses on identifying the impact of the minimum wage on reducing poverty and income inequality. The first part contains definitions and the economic and social functions of the minimum wage. The next section presents changes in the minimal salary level in Poland and its relation to the average salary in the years 2003–2014. The rest of the article attempts to assess the effectiveness of raising the minimum wage in combating poverty and reducing income inequality. The effectiveness of this solution is minimal, both in terms of the whole society, as well as socio-economic group, which should benefit most from these effects, i.e. employees.

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