Sector‐specific sticky wages and wage subsidy: a note

1998 ◽  
Vol 25 (2) ◽  
pp. 124-128 ◽  
Author(s):  
Prabir C. Bhattacharya
Keyword(s):  
Wage Subsidy ◽  
Sticky Wages

scholarly journals Asset Returns, the Business Cycle and the Labor Market

2013 ◽  
Vol 14 (3) ◽  
pp. 372-397 ◽  
Author(s):  
Burkhard Heer ◽  
Alfred Maußner
Keyword(s):  
Labor Market ◽  
Business Cycle ◽  
Equity Premium ◽  
Working Hours ◽  
New Keynesian ◽  
Monetary Shocks ◽  
Productivity Shocks ◽  
New Keynesian Models ◽  
The Business Cycle ◽  
Sticky Wages

Abstract We review the labor market implications of recent real-business cycle and New Keynesian models that successfully replicate the empirical equity premium. We document the fact that all models reviewed in this article that do not feature either sticky wages or immobile labor between two production sectors as in Boldrin et al. (2001) imply a negative correlation of working hours and output that is not observed empirically. Within the class of Neo-Keynesian models, sticky prices alone are demonstrated to be less successful than rigid nominal wages with respect to the modeling of the labor market stylized facts. In addition, monetary shocks in these models are required to be much more volatile than productivity shocks to match statistics from both the asset and labor market.

scholarly journals A Spatial Evolutionary Study of Technological Innovation Talents’ Sticky Wages and Technological Innovation Efficiency Based on the Perspective of Sustainable Development

2018 ◽  
Vol 10 (11) ◽  
pp. 4201 ◽  
Author(s):  
Xiao Dai ◽  
Jian Wu ◽  
Liang Yan
Keyword(s):  
Sustainable Development ◽  
Information Transmission ◽  
Technological Innovation ◽  
Information Dissemination ◽  
Evolutionary Relationship ◽  
Economic Transformation ◽  
Market Mechanism ◽  
Eastern Region ◽  
Sticky Wages ◽  
Initial Results

In China, with the deepening of the reform of industrial structures, the improvement of technological innovation has become a key issue. This is not only related to whether the strategic development of Chinese science and technology can be achieved, but also whether the Chinese economy and high-quality human capital can develop sustainably. Based on the theoretical boundary of sustainable development—free transfer of information—we see that sticky wages are the embodiment of information dissemination. Under the dual effects of profit-seeking behavior and information barriers, the relationship between the sticky wages of technological innovation talents (TIT), as the most profitable labor force, and technological innovation efficiency (TIE) has become more complex, and so far we still have a limited understanding of it. We explore this issue in an empirical study by using a two-stage chain Data Envelopment Analysis (DEA) of TIE followed by modifying the wages of TIT; finally, we build a collaborative evolution model with spatial effects on a large dataset (from 2007 to 2016). The results show that the overall Chinese TIE is relatively low, and in the central and western regions the TIE has been seriously reversed; there are also divergences in the TIE at different stages in the regions we focus on. As the output of technological innovation, except for initial results (such as patents), the more important value is whether it has an ability to transform the initial results into production, and the core of it is whether it can match the market environment and technology transfer system (for example, market mechanism, transformation incentive mechanism, and institutional mechanism). So, considering these aspects, the central and west of China are obviously insufficient, while the east has obvious advantages; this can also explain the results of spatial diffusion, namely, in the eastern region it is higher than in other areas, but the gap between them is gradually narrowing; lastly, from the perspective of synergy, the wage stickiness of TIT in the central region is larger than that of the eastern and western regions, and the evolutionary relationship in the former is “extruding” while in the latter it is “cooperative.” Mainly due to the popularity of the eastern innovation network and the initial state of the west, the barriers of information transmission are relatively low, while the central part is undergoing economic transformation, so its extreme demand for TIT has pushed up the cost of information transmission.

scholarly journals Reducing youth unemployment beyond the Youth Wage Subsidy: A study of Simtech apprentices

2017 ◽  
Vol 15 (0) ◽  
Author(s):  
Mogantheran Naidoo ◽  
Muhammad E. Hoque
Keyword(s):  
Success Factors ◽  
Youth Unemployment ◽  
Cross Sectional Study ◽  
Online Questionnaire ◽  
Cross Sectional ◽  
Wage Subsidy ◽  
Permanent Employment ◽  
Workplace Environment ◽  
Independent Variables ◽  
Managerial Implications

Orientation: South Africa currently has the twin challenges of worsening youth unemployment and scarce skills that threaten its economic and social stability. Artisanal trades are an occupation category that strongly reflects this current problem. Simtech Training Institute in Durban, the study setting, currently trains artisan apprentices and facilitates their internship work placements.Research purpose: The objective of this study was to identify some of the critical success factors that differentiated Simtech artisan apprentices who obtained permanent employment, compared to those who are currently unemployed.Motivation for the study: The main motivation of the study was to improve the conversion rate of artisan apprentices to permanently employed artisans.Research design, approach and method: The study was a cross-sectional study conducted among 51 artisan apprentices who had graduated over the past 3 years at Simtech and who were selected randomly. An online questionnaire comprising primarily Likert scale type questions was utilised to obtain the responses from the sample. Factor analysis was used to remove scale items from the independent variables that did not impact the variability sufficiently. Then the remaining scale items that impacted variability significantly were combined and categorised as new composite independent variables. Logistic regression analysis identified success factors for permanent employment of Simtech graduates.Main findings: Internship or workplace environment had a statistically significant impact on permanent employment. Youth work ethic had a minor impact on permanent employment status – albeit not a statistically significant one.Practical/managerial implications: These findings showed that improving the internship/ workplace environment can reduce youth unemployment and address skills scarcity.Contribution: Internship host companies and other stakeholders need to urgently focus on improving the quality of the internship/workplace environment experienced by artisan apprentices rather than just on the intake number of artisan apprentices that the Youth Wage Subsidy has encouraged to date.

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