About surplus of the buyer/seller in the labor market

The objective of the article — to analyze not only microeconomic, but macroeconomic aspects of surplus of the buyer/seller in the labor market, to research economic policy oriented on its redistribution. The concept of employer/employee surplus in the labor market is clarified. This surplus is a socio-economical phenomenon, some noneconomic factors must be taken into account in researching it. The influence of inflation, social and age characteristics, changes in the market positions of labor market subjects on their salary offers and surplus has been determined. It makes sense to differentiate between nominal and real surplus, fixed surplus and surplus that can be influenced. The article presents grouping of job advertisements based on salary formulation. Informational aspects of the identifying economic surplus are considered. The author proposes direct and indirect indicators to reveal the changes in economic surplus: wage proposals in the vacancy announcements, salary reviews, resume data, population polls, prices for services of individual entrepreneurs, dynamics of unemployment and shadow employment etc. Potential of the government policy on surplus redistribution and the regulation of employer/employee behavior is substantiated. Some instruments aimed at such redistribution through incomes of employers, employees are proposed: minimum wages regulations, changes in taxation (personal income taxation, wage taxes); indexation of personal incomes, subsidization of wages, antimonopoly and administrative regulation of prices. The government can also influence the behavior of surplus receivers through immigration policy. The influence of some instruments on surplus regulation is contradictory. Minimum wage regulations can increase and decrease the surplus at the same time.

Correcting inequality of personal incomes before income taxes and transfers: theoretical underpinnings and competition policy options

Aim: The purpose of this paper is to bring together theory and policy of (personal) income distribution on the one hand and competition policy on the other hand. Design / research: The methods used in this paper cover a brief model set-up, followed by a numerical model-calibration. Thereafter, we present a model simulation and proceed to a Gini decomposition. Herewith, we are able to demonstrate how market imperfections translate into a higher concentration of personal incomes. Conclusions / findings: Our major finding is that only a rigorous competition policy is qualified to not only correct for market imperfections, but also to fight a greater inequality of personal incomes ex-ante. Originality / value of the article: This contribution provides – to our knowledge for the first time – a simultaneous explanation for stagnating, if not falling real wages and a deteriorating development of inequality of personal incomes, as measured by the Gini coefficient ex-ante. The US economy is a case study for this double observation, but many more developed economies may follow in the foreseeable future. Limitations of the research: The implication of the research is that long before government intervenes income distribution via taxes and transfers, competition policy should correct for market imperfections and thereby reduce the inequality of personal incomes. Unfortunately, to this point, we observe a lack of meaningful macroeconomic indicators for market imperfections and hence the possibility to conduct broad econometric studies in this area of investigation.

Correcting the Underestimation of Capital Incomes in Inequality Indicators: with an Application to the UK, 1997–2016

This paper proposes a methodological framework to better incorporate non-labour income into existing top adjusted indicators of economic inequality. Surveys are known to miss the rich, receiving disproportionate amounts of capital income. There has been a surge in top harmonisation methodologies, which complement survey-based estimates of inequality with information from the rich reported in tax administrative sources. These harmonisation methods are found to have a significant upward effect on inequality indicators. This analysis uses the Family Resources Survey (household survey) and the Survey of Personal Incomes (tax data) to explore the extent to which existing UK harmonisation methodology corrects for capital income. First, this analysis finds that the FRS has experienced a significant decline in capital income measurement over the past 20 years (1997–2016), taking reported levels of capital income in the SPI as benchmark. Second, the top harmonisation methodology is found to only partially correct for this decline. Third, in response, the paper proposes a multi-step capital income correction to allocate the remaining capital income missing from top adjusted inequality indicators. The adjustment accounts for both under-coverage and under-estimation error of capital income across the income distribution. Poor measurement of capital incomes in household surveys has long been acknowledged but attempts to correct for this have remained few. This paper highlights the need for decomposable top adjusted indicators of inequality to give a better picture of the role of capital incomes in driving inequality. Surveys are traditionally used to produce inequality indicators used by governments, statistical offices and policy makers. The policy implication is that income missing from indicators structurally falls out of inequality debates, which has arguably been the case for capital incomes.

Human capital management in a pandemic and crisis

The article reflects the main problems of the development and formation of human capital and its reassessment in the context of a pandemic COVID-2019. In the context of economic management during the pandemic, the demand for human capital has increased. The most demanded personnel, as time has shown, are the medical workers, as well as the workers who ensure biological safety.The aim of the research is studying the issues of management and development of human capital, both in theoretical and practical aspects. The following tasks were completed: an analysis of the development and formation of human capital was carried out, the relationship between the intellectual capital, the level of education, personal incomes of subjects in a pandemic was analysed. The topic of the article is relevant and new due to the fact that in connection with the ongoing crisis phenomena in the form of a pandemic, an overestimation of human capital took place. The labor market is undergoing global and significant changes due to the emerging force majeure conditions.The study used methods of comparison, logical reasoning, and expert assessments. The article may be of interest to researchers in the field of economics and labor organization, as well as specialists in the field of studying labor markets and economic policy.

Fears of higher US inflation and rates are exaggerated

Significance Prominent economists disagree on whether this will fire inflation. The Federal Reserve (Fed) is for the moment prioritising economic growth and employment over price control. It sees inflation reaching 2.4% in 2021. Impacts The bill funds schemes long desired by Democrats; child support and better medical coverage will raise personal incomes and productivity. Expectations of 10-year inflation suggest prices will not accelerate in the future, as markets bet that the Fed will maintain control. The scope for large-scale borrowing is narrowing; the next item on the government’s agenda, infrastructure, will require tax increases. Seven of the Fed’s 18 policymakers expect a rate hike by end-2023; their number may increase as second-quarter data are released.

Undermined

This chapter looks at the capitalist endeavors rural workers and farmers pursued in the Gilded Age. Although they condemned their employers for cutting costs to increase their profit, rural workers often pursued capitalist gain in ways similar to their bosses. Farmer and laborers' decisions to work extra jobs, purchase stock shares, or jointly own small companies often caused rural workers to see themselves as businessmen or capitalists. As with corporations, profit motive quickly undermined collective agendas, sometimes even with cooperatives run by labor organizations. Workers took shortcuts, accepted less pay, undercut their coworkers, and broke neighbors’ strikes all because these actions increased their personal incomes. Ultimately, this need to earn greater profit shaped worker relationships with labor unions. In some cases, workers worked lower than union wages. In other instances, union leaders, concerned about the sustainability of their organizations, ordered workers to accept wage reductions rather than strike. This stance frequently angered laborers who cared more about securing their immediate incomes than reaching their union’s long-term goals.

VIOLATION OF THE ORDER OF SUBMISSION OF THE INCOME DECLARATION AS THE BASIS OF ADMINISTRATIVE RESPONSIBILITY

The subject of the article is the determination of the essence of a violation of the procedure for submitting a declaration of income as the basis of administrative responsibility. The author determined that, by its legal nature, the income statement of individuals is a form of tax reporting, performs three functions: preventative, informational and educational. The article states the goal of establishing the procedure for submitting declarations as providing a system of tax control in the field of personal incomes with more systematic, structured and transparent. The author found that the investigated administrative tort constitutes a violation of the obligation of a certain category of individuals to systematically provide them with objective and reliable information about their income, the types of which are determined by tax legislation.Keywords: administrative responsibility, tax relations, administrative tort, procedure for the submission of declarations, the purpose of administrative responsibility.

ISSUES OF IMPROVEMENT OF INCOME TAXATION OF INDIVIDUALS

The article analyzes the role and place of taxes on personal income in the formation of the budget system of Russia. Attention is paid to individual elements of the irrationality of the taxation system of personal income. Some problematic aspects in the system of tax deductions are revealed. Measures have been developed to improve the taxation of personal income. The concept of a ‘smooth-step’ progressive taxation of personal incomes is proposed.

The Comfortable, the Rich, and the Super-Rich. What Really Happened to Top British Incomes during the First Half of the Twentieth Century?

We examine shifts in British income inequality and their causes from 1911–1949. Using newly rediscovered Inland Revenue income distribution estimates, we show that Britain had an unusually high concentration of personal incomes in 1911 compared to other industrial nations. We also find that Britain’s substantial inequality reduction over the next four decades was largely driven by a collapse in top capital incomes. This parallels findings for France, the United States, and other western countries, that reduced inequality was mainly caused by declining top unearned incomes, owing to economic shocks, policy responses, and non-market mechanisms associated with the retreat from globalization.