Economics D319B1 Essay Example | Topics and Well Written Essays - 1500 words

Economics D319B1 - Essay congresswomanThere are a great number of studies on wage rates and their distribution among workers with genuine social and/or demographic characteristics. This essay proposes a theoretical framework and provides an compendium which predominantly complies with the existent literature. The author investigates the reasons behind the wage rates in the manufacturing sector in order to provide a forecast for the next decade.Todays picture of wage-rates in the manufacturing sector is determined by foreign markets competition and the change magnitude complexity of the jobs, which are moving away form the usual routine. Over the last few decades, the posit for workers in the manufacturing sector has increased. Employees with a high school diploma or less now construction an increasingly sophisticated market in which new basic, physical and mechanical skills are required. The nature of low-skilled workers jobs has changed out-of-pocket to the changes in labor m arket institutions. New technologies changed workplace organization and new types of goods and services were introduced. This led to unionization and improved organizational structure of the manufacturing industry.Topel (1993) defines several wage-rates determinants immigration, education, inequality and female labor force participation, changes in merchandise demand, international trade, and human capital investment. A study of Tachibanaki (1975), which covers twelve years (1958-1970), pays special(a) attention to the twist of certain factors for wage-rate differentials. Tachibanakis (1975) research uses major variables like sex (male or female), occupation, size of the firm, experience of the workers, age, working hours, bonuses, special payments. Tachibanaki (1975) agrees that the principal wage-rate differentialsdifferentials in educationracial and sexual discriminationagetrade unions. The last dickens decades were marked by the constant growing globalization which has been proven to affect the demand on the manufacturing workers market. This cast out impact results in lower wages. According to Bogliacino (2009) there are two possible outcomes in impairment of competition-limiting norms, depending on the time period (short run and medium run). Since this essays goal is to provide a forecast for the future tense of wage-rates and their determinants, attention should be paid to the results on the mid-run, where lower productivity egression is detrimental to wage growth (Bogliacino, 2009). The question is, how does the process of globalization affect the bargaining power of workers in the manufacturing sector For the purposes of the essay SID (Sectoral transition Database) produced at the University of Urbino will be used. SID mixes data from several surveys regarding the economic performance of the EU countries. The unit of analysis comprises 21 industries belonging to manufacturing sector in the countries that comprise approx. 80 per cent of the E uropean economy, namely France, Germany, Italy, Spain, Portugal, the Netherlands, coupled Kingdom, Poland and Norway in the period between 1994 and 2006 (Table No.1).Table No. 1 Manufacturing industries included in the SID IndustriesNACEFood, drinks and