High unemployment results from a wage structure that is too high relative to demand.
At other firms, skill differentials will eventually ripple through the wage structure based on the new minimum wage for unskilled workers.
It is only through wage freezes and inflation that a union driven wage structure can be eroded and replaced with a merit based structure.
The wage structure within the factions appears to be surprisingly flat, far more so than in the American gang analysed in 2000 by two academics, Steven Levitt and Sudhir Venkatesh.
It is also considering introducing rules that will see Whitehall contracts awarded to firms who pay workers the living wage or above and giving Treasury-funded incentives to companies who introduce the wage structure.
BBC: Duncan Smith: Welfare changes will make living wage easier
And to put some scale on that, if General Motors, for example, had Toyota's wage structure or benefit structure or health care cost, that is roughly equal to five new products a year every year.
The original idea behind the Bush administration's changes to the H-2A program--which went through a lengthy rulemaking process--was to cut out the red tape in the visa process and make the wage structure more efficient.
Suppose a high minimum wage, by pressing on the structure of pay differentials, raises wage growth and hence inflation across the economy.
Meanwhile, Pathmark gets relief from its biggest problem--a bloated cost structure driven by wage and health care inflation.
Foreign policy blunders, our rigid tax structure, lower wage scales abroad, and failure of regulators to monitor intensively brokers and big banks.
"A tax structure in which wage earners, pensioners and a small percentage of companies bear the overwhelming burden is not sustainable, " he says.
应用推荐