scholarly journals Firm Response to Competitive Shocks: Evidence from China's Minimum Wage Policy

2017 ◽  
Author(s):  
Harald Hau ◽  
Yi Huang ◽  
Gewei Wang
Keyword(s):  
Minimum Wage ◽  
Wage Policy ◽  
Firm Response

scholarly journals Firm Response to Competitive Shocks: Evidence from China’s Minimum Wage Policy

2020 ◽  
Vol 87 (6) ◽  
pp. 2639-2671 ◽  
Author(s):  
Harald Hau ◽  
Yi Huang ◽  
Gewei Wang
Keyword(s):  
Minimum Wage ◽  
Management Practices ◽  
Employment Growth ◽  
Manufacturing Firms ◽  
Wage Policy ◽  
Management Quality ◽  
Employment Share ◽  
Firm Response ◽  
Wage Employment ◽  
Heterogeneous Firm

Abstract The large regional variation in minimum wage levels during the period 2002–8 in China implies that Chinese manufacturing firms experienced competitive shocks as a function of firm location and their low-wage employment share. We find that minimum wage hikes accelerate the input substitution from labour to capital, reduce employment growth and accelerate total factor productivity growth—particularly among the less productive firms under private Chinese or foreign ownership, but not among state-owned enterprises. The heterogeneous firm response to labour cost shocks can be explained by differences in management practices and suggests that management quality and competitive pressure are complementary.

PENGARUH UPAH MINUMUM TERHADAP TENAGA KERJA DI NEGARA DENGAN TINGKAT PENGHASILAN RATA-RATA YANG RENDAH

2017 ◽  
Vol 6 (2) ◽  
Author(s):  
Veny Anindya Puspitasari
Keyword(s):  
Minimum Wage ◽  
Basic Needs ◽  
Wage Policy ◽  
Average Income ◽  
Income Per Capita ◽  
Unskilled Workers ◽  
Water Association ◽  
International Water ◽  
Per Capita ◽  
Association Data

<p>The minimum wage is a macroeconomic issue that is still debated, Basically, the minimum wage policy aimed to protect workers, so that thet earn an adequate wages to finance the basic needs of their life. Practically, the minimum wage policy often encounters its purpose because it is regarged as miserable for those who have no expertise. This phenomenon is mainly happening in the low –avegrage- income countries that have many unskilled workers. Gahana, Indonesia, Costra Rica were used to be analyzed in this paper. According to International Water Association data year 2006, those countris earn income per capita less than US$ 9,200 and were categorized as low average – income countries. This research found that minimum wage impelentation in all three countries was not effective. When minimum wage policy was implemented, a lot of people felt aggrieved.</p><p>Keywords : Economic polict, Minimum wage, Income</p>

Earnings, EITC, and Employment Responses to a $15 Minimum Wage: Will Low-Income Workers Be Better Off?

2019 ◽  
Vol 33 (4) ◽  
pp. 331-350 ◽  
Author(s):  
Fahad Fahimullah ◽  
Yi Geng ◽  
Bradley Hardy ◽  
Daniel Muhammad ◽  
Jeffrey Wilkins
Keyword(s):  
Minimum Wage ◽  
Low Income ◽  
Computable General Equilibrium ◽  
Computable General Equilibrium Model ◽  
Perfect Competition ◽  
Tax Credit ◽  
Wage Policy ◽  
Policy Makers ◽  
Consumer Prices ◽  
The City

The District of Columbia will increase its minimum wage to $15 per hour in 2020. The city also provides a local refundable earned income tax credit (EITC) equal to 40% of the federal EITC. Using a computable general equilibrium model, the authors estimate the economic impact of the $15 wage policy. They also use a tax policy microsimulation model to estimate how the city’s EITC interacts with a higher minimum wage. Overall, the authors find that the higher minimum wage will produce significant income gains for most of the city’s low-wage workers, with relatively few job losses. Additionally, they forecast that most city EITC recipients will receive a lower EITC, but higher earnings more than offset the reduced tax credit. The model predicts that this policy change would largely be funded by higher consumer prices, lower firm profits, and higher business productivity. These predictions are subject to important caveats, including a local labor market that is likely inadequately characterized in a model assuming perfect competition. Economic policy makers should therefore use such modeling approaches as a powerful but ultimately imperfect tool.

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.

scholarly journals PERLINDUNGAN HUKUM TERHADAP PEKERJA ATAS HAK UPAH MINIMUM YANG BELUM SEPENUHNYA DIBAYAR (STUDI TERHADAP PUTUSAN NOMOR 58/K/PDT.SUS-PHI/2015)

2018 ◽  
Vol 1 (1) ◽  
pp. 389
Author(s):  
Safira Khairani ◽  
Andari Yurikosari
Keyword(s):  
Human Rights ◽  
Minimum Wage ◽  
Industrial Relation ◽  
Dispute Settlement ◽  
District Court ◽  
Wage Policy ◽  
Labour Law ◽  
Human Labour ◽  
The Will ◽  
The Republic

Work and fair and proper remuniration are human rights of every person as stipulated on Article 28 D (2) The 1945 Constitution of The Republic Indonesia. Indonesia Law Number 13 Of 2003 regulates the rights and duties among entrepeneur and workers. Wage shall be received by worker/labourer as remuniration from entrepeneur. Labour Law provides the protection to wage as worker/labour’s right, stipulating that Government establishes a wage policy that protects the rights of worker/labourer such as Minimum Wage in order to fulfill every worker/labourer’s right to earn an income that meets livelihood that is decent for human. Labour Law also stipulates the wage will not be paid if worker/labourer do not perform work unless the worker/labourer has the will to do the job as promised but the entrepeneur does not employ them. The main issue in this research is the workers/labourers of PT. Srirejeki Perdana Steel claimed that they did not received full wage on November 2013 causing the amount of some of their wages lower than the amount of Minimum Wage set under valid statutory legislation. PT. Srirejeki Perdana Steel, postulated the reduction of the wage happened due to an illegal strike performed by the workers/labourers. The verdict on Industrial Relation Dispute Settlement of Bandung District Court and Indonesia Supreme Court did not grant the workers/labourers demand to get the fulfillment of their reducted wage. This research aims to acknowledge whether the protection towards workers/labors’s wage as verdicted by court followed the ruling as stipulated in Labourer Law.

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