Can a Statistical Solution for Calculating the Social Cohesion Index Be the Ratio Between the Average and The Minimum Wage in Romania?

Gheorghe Săvoiu

Romanian Statistical Review Supplement, 2018, vol. 66, issue 3, 43-55

Abstract: A correlation recognized in general economic terms, and outlined as natural economic development, follows the factorial trajectory: investment – productivity – wages. At the same time, social cohesion, alongside the economic growth rate, unemployment rate, inflation rate and trade deficit of the trade balance, are well-established piloting indicators in the macroeconomic policies, as well as the five dimensions of the economy’s “magic” pentagon. Each of the two previous statements constitutes a limiting bar of a discussion space, and the article is practically placed between them. One aspect derived from the above considerations is that the paper could be conceived only as placed “between bars”, and also titled in the form of a question, as a logical consequence. Actually, in this article the author had to try to find answers not to one, but to several questions derived from a few problematic issues, which represent the final substance of the article: i) What do statistically represent the minimum, average and maximum wage in an economy? ii) Are there similarities in wage evolution or fluctuations relative to average and minimum wages, at global level and in the European Union (EU)? iii) To what extent is the real wage dynamics affected by the differentiated developments in the minimum, maximum and average wages? iv) How reliable can a statistical solution be, devised to calculate the social cohesion index in Romania, quantified by the evolution of the ratio between the maximum or the average wage, and the minimum wage? v) Is the significant degradation of cohesion solely due to the numerator? vi) When can the excessive development of the denominator create problems of exclusion, or even serious inequity? vii) What is the future of the minimum – medium – maximum relationship in the Romanian wage statistics population? The authenticity of the questions inherently implies the originality of the article and its conclusions, always questioning the apparent certainities related to the forecast of the average salary trend compared to the minimum wage.

Keywords: statistical indicator of social cohesion; minimum wage; average maximum; wage earning; salary distribution; coefficient of homogeneity. (search for similar items in EconPapers)
Date: 2018
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