The economic feasibility of Gerga's orange (Citrus sp.) agribusiness as a new source of economic growth in Bengkulu, Indonesia

This research gave the empirical verification that orange’s agribusiness can be a source of new growth for its center production region, as in case the Gerga’s orange agribusiness for Bengkulu province in Indonesia. It is verified this kind of agribusiness benefited its largest stakeholder, namely farmers, based on parameters such as B/C ratio, farmer's share, and marketing margin. From a macroeconomic perspective, Gerga's agribusiness also can solve macroeconomic problems such as poverty, unemployment, basic needs, and regional minimum wages.

The minimum social guarantee of employees’ wages in Russia: 2020-2021

In 2021 the methodological approaches to the assessment of the minimum wage and the subsistence minimum level (SML) undergone significant changes. According to federal law No 473-FZ of December 29, 2020, these minimum social guarantees are to be calculated relative to the median wage (at 42%) and the median per capita income (at 44.2%) for the past year. This article reviews the changes in the minimum social guarantees as regards employees’ wages in Russia and its regions in the past two years. A new methodology for estimating the median wages had not been developed by the start of 2021. According to Law No 473-FZ the federal minimum wage was set using the Pension Fund data at the rate of 12792 rubles per month. The majority of regions used the federal minimum wage as the basis for defining regional minimum wages. A comparative analysis of regional minimum wages in 2020 and 2021 was carried out for two groups of regions, the regions with regular climate conditions and the regions with special (extreme) climate conditions where the regional coefficient for wages is applied. The analysis shows that in 2021 the minimum wage increased by 5,5% compared to 2020 in most regions. The exception is 11 regions of the Russian Federation, where the minimum wage was set at an increased rate compared to the federal level. The article analyses the ratio of the minimum wage and means wage of all employees in 45 regions of the Russian Federation with normal climate conditions and in 16 regions with extreme climate conditions, where a unified rayon coefficient is set up at the territory of the region. The dynamics of this indicator allows for estimating the trends in wage inequality

Monopsony power and the demand for low-skilled workers

This study analyses firms’ labour demand when employers have at least some monopsony power. It is argued that without taking into account (quasi-)monopsonistic structures of the labour market, wrong predictions are made about the effects of minimum wages. Using switching fractional panel probit regressions with German establishment data, I find that slightly more than 80% of establishments exercise some degree of monopsony power in their demand for low-skilled workers. The outcome suggests that a 1% increase in payments for low-skilled workers would, in these firms, increase employment for this group by 1.12%, while firms without monopsony power reduce the number of low-skilled, by about 1.63% for the same increase in remuneration. The study can probably also be used to explain the limited employment effects of the introduction of a statutory minimum wage in Germany and thus leads to a better understanding of the labour market for low-skilled workers. JEL Codes: J23, J42, C23, D24

Minimum wages, youth employment and spatial spillovers: New evidence for Spain

The effect of minimum wages increases on youth employment level has been extensively analysed, but recent contributions have highlighted the potential bias in these studies due to neglected spatial autocorrelation in the considered relationship. This paper contributes to this scarce literature by providing novel evidence for a country with very low interregional mobility. The aim is to see if the bias of neglecting spatial dependence acts in a similar direction than in the few studies for the United States and if this bias explains the low elasticity of youth employment to minimum wages in Spain compared to the international literature. Our results show the relevance of spatial spillovers in the Spanish regional labour markets, but after correcting for the bias, we do not find a significant negative elasticity of youth employment to minimum wages, with the only exception of those between 16 and 19 years old.

The Effect of Investment, District Minimum Wages, and Number of Small Medium Industry Units on Labor Employment: Empirical Study on The District/City Small Medium Industry Sector 2013 - 2019

Minimum Wages, Numbers of medium and small industry on Employment of small and medium Industry, in the city/district of the Special Region of Yogyakarta in 2013-2019. This research is based on secondary data, namely data sourced from the book of small and medium industry potential and publication of the Central Bureau of Statistics. The analysis tool used is panel data regression with the fixed effect model method. Based on the results of the study, the Investment has a positive and significant effect on the Employment of Small and Medium Industry, the Regional Minimum Wages has a negative and significant effect on the Employment of Small and Medium Industry, and the number of Small and Medium industry has a positive and significant effect on the Employment of Small and Medium Industry.

Wage Bargaining and Minimum Wages in a Search–Matching Model

In this paper, we analyze the introduction of a nonbinding minimum wage in a search–matching model with wage bargaining. Applying the Kalai–Smorodinsky bargaining solution instead of the commonly applied Nash solution, we provide a theoretical explanation for spillover effects of minimum wages on other wages higher up in the wage distribution. The labor market equilibrium in the Kalai–Smorodinsky solution with a minimum wage is characterized by lower market tightness, a higher unemployment rate, and lower vacancy rate than the equilibrium in the Nash solution. Moreover, we show that a nonbinding minimum wage can increase social welfare.