ANALYSIS OF WAGE SYSTEM AND LABOR COST IN THE EUROPEAN UNION

Constantin Anghelache, Madalina-Gabriela Anghel and Doina Burea
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Constantin Anghelache: Bucharest University of Economic Studies / „Artifex” University of Bucharest
Madalina-Gabriela Anghel: „Artifex” University of Bucharest
Doina Burea: Bucharest University of Economic Studies

Romanian Statistical Review Supplement, 2017, vol. 65, issue 12, 10-16

Abstract: In this article, the authors start from the importance of the labor force in the production activity of each country. At EU level, it is important to ensure that labor force skills are improved so as to ensure the best possible use. The pay system is essential in attracting workforce into the system of producing goods and services. Salaries depend on the capacity of each economy, both for people working in the budgetary system and in the private system, to ensure convenient wages, and in this way the European Union seeks to achieve, as far as possible, a close approximation of the level of pay in the countries of the European Union . In this analysis, the authors look at the concrete conditions in the European Union, analyze the purchasing power parity as an essential indicator in assessing the quality of life in each country, and concretely determine what the situation and prospect in each country is to achieve an improvement quality of life. An element of analysis over which the authors have stopped is represented by the minimum wage in the economy and especially the extent to which this minimum wage is used in the European Union as a whole, as well as in the Member States of the European Union. The examples given are sufficient to understand that the minimum wage level in the national economy must be correlated with the number of employees in a country, of those employed in this category. There are countries, among which Romania, where out of the total number of employees, over 35%, still receive incomes that are at the minimum wage level in the economy. In this regard, we must also note that the European Union’s strategy, although it provides some directives in this respect, is differently implemented in some Member States. In the case of Romania, we are still aware of the difficulties that exist with regard to the wage law that is likely to be approved and will come into force on 1 January 2018, but which still raises controversy. There are countries where the general government policy is geared towards either a social policy, support for people with low incomes, to provide some revenue growth opportunities, and so on, and countries that have exceeded this threshold. However, a social policy has at least a short-term effect on reducing the volume of investments that create new jobs and provide higher wages, leading to higher wages, but still maintaining higher unemployment.

Keywords: wage; social policy; income; investment; job (search for similar items in EconPapers)
JEL-codes: J31 O15 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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