|Series||Discussion paper / Harvard Institute of Economic Research -- no.582|
Abstract. Wage indexation is a mechanism designed to adjust wages to information that cannot be foreseen when the wage contract is negotiated. A wage contract with indexation clauses will specify the wage base (that is, the money wage applicable in the absence of new information), the indexation formula that will be used to update wages, and how often updating will occur. BOOK TWO National Manpower Development Program. RULE I Definition of Terms. SECTION 1. Definition of terms. — (a) "Council" refers to National Manpower and Youth Council. cralaw (b) "Human resources development" refers to the process by which the actual and potential labor force is made to systematically acquire greater knowledge, skills or capabilities for the nation's sustained economic. A $15 wage indexed to inflation will therefore worsen extreme inequality and workers will once again not have enough money in their pockets to drive our economy forward. On the other hand, if wages are indexed to economy-wide productivity it is possible they will . economics chapter 8 section 4. STUDY. Flashcards. Learn. Write. Spell. Test. PLAY. Match. Gravity. Created by. lmcclend. Terms in this set (10) giveback. a wage, fringe benefit, or work rule given up when a labor contract is negotiated. two-tier wage system. a system that keeps high wages for current workers. glass ceiling.
the branch of economics that deals with the economy as a whole, including employment, gross domestic product, inflation, economic growth, and the distribution of income. civilian labor force men and women 16 years old and over who are either working or actively looking for a job. wage, fringe benefit, or work rule given up when a labor contract is renegotiated two-tier wage system system that keeps high wages for current workers, but has a much lower wage for newly hired workers. In the s and s, labor unions commonly negotiated wage contracts that had cost-of-living adjustments (COLAs) which guaranteed that their wages would keep up with inflation. COLAs are a form of indexing applied to. the imposition of an effective minimum wage will increase the wage rate paid and decrease employment in the market. if an effective minimum wage is imposed on a monopsonist. the wage rate paid by the firm will increase and the number of workers employed by it may also increase. the strength of labor demand.
These contracts were sometimes written as, for example, COLA plus 3%. Thus, if inflation was 5%, the wage increase would automatically be 8%, but if inflation rose to 9%, the wage increase would automatically be 12%. COLAs are a form of indexing applied to wages. Bradley and Jansen () take account of the mechanism of nominal wage contracts indexed to the price level. They conclude that the output can be stabilized perfectly with the combination of. Blanchard, Olivier Jean, "Wage Indexing Rules and the Behavior of the Economy," Journal of Political Economy, University of Chicago Press, vol. 87(4), pages , erg, Ronald G & Danziger, Leif & San, Gee, "Cost-of-Living Adjustment Clauses in Union Contracts: A Summary of Results," Journal of Labor Economics, University of Chicago Press, vol. 1(3), pages , July. Downloadable (with restrictions)! Cost of living escalators are an important feature of North American labor contracts. This paper presents a measure of the response of index-linked wage increases to concurrent price increases for a sample of Canadian contracts, and then analyses this response in terms of a simple model of indexation to the aggregate price level.