Labor union and the wealth-income ratio

Chu, Angus C.; Kou, Zonglai; Liu, Xueyue

doi:10.1016/j.econlet.2018.02.023

Cited by 9 publications

(9 citation statements)

References 17 publications

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“…Chinese companies have also experienced the same phenomenon, coupled with the prevalence of social networks, but wages may have been unable to adapt to personnel capabilities. Therefore, enterprises need to gradually improve the staff assessment system and make efforts to retain innovative talent in the system [71]. (5) Intensifying cross-regional cooperation between different regions, canceling the employment restrictions of the registered permanent residence management system on TIT gradually, thereby lowering information barriers, increasing information transparency, and deepening the space diffusion ability of TIT will win more time and space for the development of industrial sci-tech innovation.…”

Section: Conclusion and Suggestions For Future Researchmentioning

confidence: 99%

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

Dai

Yan

2018

Sustainability

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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.

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Section: Conclusion and Suggestions For Future Researchmentioning

confidence: 99%

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

Dai

Yan

2018

Sustainability

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“…Note that π d t itself does not change, and so neither does (13). The profit for foreign capital goods also becomes: (16) do not alter. We should reconsider the structure of R&D externalities.…”

Section: Appendix Bmentioning

confidence: 97%

“…In other words, for a given (n f ) 1/α x f , a higher minimum wage µ leads to an increase in the income share Φ f of imported capital goods by decreasing L f due to the substitutability between labor and imported inputs. Combining (13), (16), (17), and (20) yields the steady-state ratio of relative technology between the two sectors as n f…”

Section: Effects Of Minimum Wage On Innovationmentioning

confidence: 99%

“…The cities with the lowest increase were Qingyuan and Yangjiang from Guangdong Province, where the minimum wage in 2012 was 2.36 times that in 2000. 16 We also calculate the ratio of the firms' average wage to the city level minimum wage to see how binding minimum wages in China are. A lower ratio implies that the local minimum wage is more likely to be binding.…”

Section: China's Minimum-wage Systemmentioning

confidence: 99%

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Minimum Wages, Import Status, and Firms' Innovation: Theory and Evidence From China

et al. 2020

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This study explores the heterogeneous effects of minimum wage on innovation of different types of firms. We develop an open-economy R&D-based growth model and obtain the following result: raising the minimum wage reduces innovation of firms that use domestic inputs but increases innovation of firms that import foreign inputs. Intuitively, when the minimum wage increases, importing firms substitute labor with imported inputs, which have technology spillovers and enhance their innovation. We test this result using city-level data on minimum wages and firm-level patent data in China. Finally, we find that in accordance with our theory, raising the minimum wage is associated with more innovation by importing firms and less by non-importing firms. This result survives a battery of robustness checks.

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“…The household has H + L members. 6 Each of the H members supplies one unit of high-skill labor and earns ! t , which is above the minimum wage and determined as an equilibrium outcome in the high-skill labor market.…”

Section: Householdmentioning

confidence: 99%

Dynamic effects of minimum wage on growth and innovation in a Schumpeterian economy

2020

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We explore the dynamic e¤ects of minimum wage in a Schumpeterian model with endogenous market structure and obtain the following results. First, raising the minimum wage decreases the employment of low-skill workers and increases the unemployment rate. Second, it decreases the level of output. Third, it decreases the transitional growth rate of output but does not a¤ect the steady-state growth rate. Our quantitative analysis shows that the magnitude of the negative e¤ects of minimum wage is sharply increasing in low-skill labor intensity in production and that employed low-skill workers gain initially but might su¤er from slower growth in future wages.

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Labor union and the wealth-income ratio

Cited by 9 publications

References 17 publications

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

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

Minimum Wages, Import Status, and Firms' Innovation: Theory and Evidence From China

Dynamic effects of minimum wage on growth and innovation in a Schumpeterian economy

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