Home  About us  Contact
 

Real Wages (real + wage)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting63%
Humanities and Social Sciences36%

Terms modified by Real Wages

  • real wage rate
    		•

    Selected Abstracts

    The Irish grain trade from the Famine to the First World War

    ECONOMIC HISTORY REVIEW, Issue 1 2004
    Liam Brunt
    This article presents the first consistent and continuous data series for the Irish grain trade, 1840-1914, showing that imports of wheat and maize rose massively. The resulting three-fold increase in Irish per caput wheat consumption occurred mostly before 1875 and brought it close to British levels by 1914. A consumer price index is constructed for the period, and it reveals that prices declined until 1900 and rose thereafter. Using the two new series (per caput wheat consumption and the price index), the authors estimate a demand function for wheat and show that the per caput increase was due to the rise in the real wage. [source]

    Progress and poverty in early modern Europe

    ECONOMIC HISTORY REVIEW, Issue 3 2003
    Robert C. Allen
    An econometric model of economic development is estimated with data from leading European countries between 1300 and 1800. The model explores the impact of population, enclosure, empire, representative government, technology, and literacy on urbanization, agricultural productivity, proto-industry, and the real wage. Simulations show that the main factors leading to economic success in north-western Europe were the growth of American and Asian commerce and, especially, the innovations underlying the export of the new draperies in the sixteenth and seventeenth centuries. The enclosure of the open fields, representative government, and the spread of literacy did not play major roles. [source]

    Volatility, Stabilization and Union Wage-setting: The Effects of Monetary Policy on the ,Natural' Unemployment Rate

    ECONOMIC NOTES, Issue 1 2002
    Luigi Bonatti
    In a unionized economy with nominal-wage contracts, the ,natural' (rational-expectations equilibrium) employment level is not invariant with respect to the stabilization rule followed by the monetary authority. This is because alternative monetary policies change the variance of the inflation rate (price level) relatively to the variance of some measure of economic activity (employment level), thereby influencing the trade-off desired by union members between the real wage and the probability of employment. Indeed, a more volatile employment level induces the (risk-neutral) union members to prefer a higher expected real wage. (J.E.L: E5, J5). [source]

    Moonlighting in a High Growth Economy: Evidence from U.S. State-Level Data

    GROWTH AND CHANGE, Issue 4 2002
    Mark Partridge
    Despite the prevalence of multiple jobholding, there is relatively little research into its causes. Existing research has tested the predictions of standard labor models with micro data. Yet, there has been virtually no research into the relationship between moonlighting and structural differences in regional labor markets such as wages and employment growth. In this manner, this study examines the large differences in multiple jobholding rates across U.S. states. The findings indicate that multiple jobholding acts as a short-term shock absorber to cyclical changes. However, in the long-term, these effects dissipate, indicating that moonlighting plays a similar role as do changes in unemployment and labor-force participation to regional labor market shocks. Conversely, multiple jobholding rates are inversely related to average weekly earnings. Thus, job growth accompanied by real wage (and productivity) growth may result in a decline in multiple jobholding, further exacerbating potential labor shortages. Other key factors found to influence multiple jobholding include occupational structure and education. [source]

    THE PROFIT,INVESTMENT,UNEMPLOYMENT NEXUS AND CAPACITY UTILIZATION IN A STOCK-FLOW CONSISTENT MODEL

    METROECONOMICA, Issue 3 2010
    Jean-Bernard Chatelain
    ABSTRACT This paper studies under which conditions the share of profit in value-added, financial constraints on investment and capital shortage may foster unemployment and may limit the growth of capital and/or the growth of aggregate demand, in a stock-flow consistent model. The efficiency of demand-side versus supply-side economic policies (decrease of the real interest rate and/or of the real wage, increase of the leverage ceiling constraint) depends on capital shortage and credit rationing, which are not necessarily simultaneous due to the effects of investment on aggregate demand and supply. [source]

    Making profits in wartime: corporate profits, inequality, and GDP in Germany during the First World War1

    ECONOMIC HISTORY REVIEW, Issue 1 2005
    JOERG BATEN
    Making profits in wartime: corporate profits, inequality, and GDP in Germany during the First World War. This article reconsiders, and rejects, Kocka's (1973) hypothesis that a strong income redistribution from workers to capital owners occurred in Germany during the First World War. A small number of firms profited from the war, but the majority experienced a decline in real income, similar to the decline in workers' real wages. This finding also has important implications for the political history of the Weimar Republic. The authors also use their figures to improve German GDP estimates for the war period, since their sample makes it possible to estimate private service sector development. Economic indicators were worse for the war year of 1917 than previously believed. [source]

    The ,revolt of the early modernists' and the ,first modern economy': an assessment

    ECONOMIC HISTORY REVIEW, Issue 4 2002
    Jan Luiten Van Zanden
    Established views of the early modern economy have changed considerably. De Vries and Van der Woude maintain that the Dutch economy was exceptional in its process of ,modern economic growth' in 1500,1815. This article argues that economic growth in the Netherlands was probably not much faster than in England, as is clear from the development of real wages. The modernity of the Dutch economy in this period appears to be a product of economic and institutional changes in the middle ages. [source]

    The Interaction between the Central Bank and a Single Monopoly Union Revisited: Does Greater Monetary Policy Uncertainty Reduce Nominal Wages?

    ECONOMIC NOTES, Issue 3 2007
    Luigi Bonatti
    Previous papers modelling the interaction between the central bank and a single monopoly union demonstrated that greater monetary policy uncertainty reduces the union's nominal wage. This paper shows that this result does not hold in general, since it depends on peculiar specifications of the union's objective function. In particular, I show that greater monetary policy uncertainty raises the nominal wage whenever union members tend to be more sensitive to the risk of getting low real wages than to the risk of remaining unemployed. This conclusion appears consistent with the evidence showing that greater monetary authority's transparency reduces average inflation. [source]

    Unemployment, growth and taxation in industrial countries

    ECONOMIC POLICY, Issue 30 2000
    Francesco Daveri
    To the layman, the upward trend in European unemployment is related to the slowdown of economic growth. We argue that the layman's view is correct. The increase in European unemployment and the slowdown in economic growth are related, because they stem from a common cause: an excessively rapid growth in the cost of labour. In Europe, labour costs have gone up for many reasons, but one is particularly easy to identify: higher taxes on labour. If wages are set by strong and decentralized trade unions, an increase in labour taxes is shifted onto higher real wages. This has two effects. First, it reduces labour demand, and thus creates unemployment. Secondly, as firms substitute capital for labour, the marginal product of capital falls; over long periods of time, this in turn diminishes the incentive to invest and to grow. The data strongly support this view. According to our estimates, the observed rise of 14 percentage points in labour tax rates between 1965 and 1995 in the EU could account for a rise in EU unemployment of roughly 4 percentage points, a reduction of the investment share of output of about 3 percentage points, and a growth slowdown of about 0.4 percentage points a year. [source]

    Union Wage Setting and Capital Income Taxation in Dynamic General Equilibrium

    GERMAN ECONOMIC REVIEW, Issue 2 2001
    Thomas Aronsson
    This paper concerns the effects of capital income taxation in a dynamic general equilibrium framework with union wage setting, when households face taxes related to both labor and capital. One purpose is to characterize the general equilibrium solution. Another is to study the effects of increased capital income taxation , in terms of the responses in real wages, employment, capital stock, output and consumption , and relate these behavioral responses to the overall tax structure. We also derive a cost,benefit rule for the purpose of analyzing the welfare effects of a small shift from labor income taxation to capital income taxation. [source]

    Menu Costs, Nominal Wage Revisions, and Intracontract Wage Behavior

    INDUSTRIAL RELATIONS, Issue 2 2002
    Louis N. Christofides
    We use data from indexed and nonindexed Canadian wage agreements to study the intracontract profile of nominal and real wages. Allowing for endogenous switching between the two indexation categories, we conclude that the number of nominal wage revisions depends on contract duration, expected inflation, and the cost of adjusting wages. Our results have implications for the menu cost, overlapping contracts, dynamic monopoly union, and efficient bargain literatures. [source]

    Immigrant Wage Disadvantage in Sweden and the United Kingdom: Wage Structure and Barriers to Opportunity,

    INTERNATIONAL MIGRATION REVIEW, Issue 3 2010
    Christel Kesler
    This article examines immigrant/native-born wage inequalities among workers in two Western European countries: Sweden, social democratic and with comparatively low wage dispersion, and the United Kingdom, economically liberal and with comparatively high wage dispersion. The analysis includes immigrants from 26 countries of origin. Findings demonstrate that inequalities in terms of real wages are smaller in more egalitarian Sweden. However, in terms of relative positions within the labor market, inequalities are if anything smaller in the UK. These findings highlight the role of wage dispersion in magnifying immigrant disadvantage, but also the limits of wage compression for ameliorating barriers to immigrant opportunity. [source]

    Distributional Impacts of Pension Policy in Argentina: Winners and Losers within and Across Generations

    INTERNATIONAL SOCIAL SECURITY REVIEW, Issue 3 2006
    Camila Arza
    The paper deals with the life-cycle intra- and intergenerational income transfers operated by the pension system in Argentina by estimating the internal rates of return obtained by different generations and types of workers from their participation in the system. The empirical analysis confirms that earlier generations of workers benefited from higher social security returns than later generations, which retired under a matured system with large deficits. The worst-affected cohorts were those born after 1920, particularly suffering from a social security crisis and falling real wages. For future generations retiring fully under the new mixed pension system, returns will more closely depend on financial market performance and the evolution of administration costs. Intragenerational transfers were also observed for all cohorts under study, as a result of the original system design as well as adjustments adopted during the implementation process. The real distributional impact of progressive benefit formulas could, however, be offset by state transfers to cover pension deficits and forward tax shifting in a context of unequal pension coverage. [source]

    US,Mexico fresh vegetable trade: the effects of trade liberalization and economic growth

    AGRICULTURAL ECONOMICS, Issue 1 2001
    Jaime E. Málaga
    NAFTA; Vegetables; Trade liberalization; Mexico Abstract Studies of US-Mexico vegetable trade have generally emphasized the importance of US tariffs in determining the competitive advantage of US producers. Even so, research has identified at least four factors related primarily to the different levels of economic development in the US and Mexico that also have important effects on US-Mexico agricultural trade in general and fresh vegetable trade in particular. These include the differential growth rates of US and Mexican real wages, production technology (yields), and per capita income as well as cyclical movements in the real Mexican Peso/US Dollar exchange rate. This study examines the relative contribution of NAFTA and the development-related factors to likely future changes in US fresh vegetable imports from Mexico. The analysis employs an econometric simulation model of US and Mexican markets for five fresh vegetables (tomatoes, cucumbers, squash, bell peppers, and onions) accounting for 80% of US fresh vegetable imports. The results suggest that the 1994,1995 Peso devaluation rather than NAFTA was primarily responsible for the sharp increase in US imports of Mexican vegetables observed in the first years following the implementation of NAFTA. Over time, however, the results suggest that differences in the growth rates of US and Mexican production yields and, to a lesser extent, of US and Mexican real incomes and/or real wage rates could plausibly contribute more to the future growth of US tomato, squash, and onion imports from Mexico than the trade liberalizing effects of NAFTA. [source]

    RISING WAGES: HAS CHINA LOST ITS GLOBAL LABOR ADVANTAGE?

    PACIFIC ECONOMIC REVIEW, Issue 4 2010
    Dennis Tao Yang
    We document dramatic rising wages in China for the period 1978,2007 based on multiple sources of aggregate statistics. Although real wages increased seven-fold during the period, growth was uneven across ownership types, industries and regions. Over the past decade, the wages of state-owned enterprises have increased rapidly and wage disparities between skill-intensive and labour-intensive industries have widened. Comparisons of international data show that China's manufacturing wage has already converged to that of Asian emerging markets, but China still enjoys enormous labour cost advantages over its neighbouring developed economies. Our analysis suggests that China's wage growth will stabilize to a moderate pace in the near future. [source]

    The Causes of Unemployment in Interwar Australia

    THE ECONOMIC RECORD, Issue 243 2002
    Nicholas H. Dimsdale
    This paper examines the factors contributing to unemployment in Australia during the Great Depression of the 1930s. Previous writers have emphasised the role of demand,side variables but it has also been argued that excessive real wages caused unemployment. The Layard,Nickell model, developed originally for the postwar British economy, is applied to Australian data. The empirical results confirm that demand shocks in the form of changes in government spending and in the terms of trade were important in both downturn and recovery. Wage indexation resulted in some rigidity of real wages but this was not a major cause of unemployment. [source]

    WAGE GROWTH, HUMAN CAPITAL AND FINANCIAL INVESTMENT,

    THE MANCHESTER SCHOOL, Issue 6 2005
    SARAH BROWN
    The aim of this paper is to explore the relationship between wage growth, human capital and investment in financial assets at the individual level. We investigate this relationship using data from five waves of the British Household Panel Survey. We exploit panel data enabling us to determine the change in real wages experienced by individuals across four different time horizons, 1995,96, 1995,98, 1995,1700 and 1700,1. Our findings support a positive association between financial assets and wage growth with this relationship becoming more pronounced over time. In addition, our results suggest that investment in financial assets is positively associated with returns to human capital investment. [source]

    IMMIGRATION UNEMPLOYMENT RELATIONSHIP: THE EVIDENCE FROM CANADA,

    AUSTRALIAN ECONOMIC PAPERS, Issue 1 2007
    ASADUL ISLAM
    This paper examines the relationship between unemployment and immigration in Canada. The bi-directional causality test finds no evidence of a significant effect of Canadian immigration on unemployment. Cointegration tests indicate that there is no observed increase in aggregate unemployment due to immigration in the long run. The results from the causality test based on the vector error correction model confirm that, in the short run, past unemployment does cause (less) immigration but not vice versa. There is also a long-run positive relationship among per-capita GDP, immigration rate and real wages. The results indicate that, in the short-run, more immigration is possibly associated with attractive Canadian immigration policies, and in the long-run, as the labour market adjusts, Canadian-born workers are likely to benefit from increased migration. [source]