Wage Earnings in Australia, Canada and the United States - Research Paper Example

Wage Earnings in Australia, Canada and the United States: Comparative Analysis Wage earning is a term that is generally referred to salary and pay benefits, if it is to be discussed in general. The specification which we enclose with the deductive term is the hourly rate. It is generalized with hourly pay rate (the range of minimum to maximum) which an employee earns per hours. The economics of earning implies that an effective wage rate level (on its minimum) is the level which is substantial enough to fulfill the day by day requirements of people who are in the situation at particular time. The game of the numbers is to be adjusted in such a way that there must not be any ambiguity in the statistical manipulation and representation. The main objectives of the particular vary study to get insights in employment records as well as the comparison in the earning rates of USA, Canada and Australia. It was the topical history of America and the broadening of the monetary gap between those at the uppermost and bottommost level of the pay rate. In one of the study, Jack Rasmus (2004) writes that what is the instance of the phenomenon that anybody of us loves to make 200,000 USD per year after completion of 25 successful years on the job. There is a lot of difference in the value of money that is being generated by the workers on the job compared to last 25 years. They are making a very different value right now. If you would like to have the same value and same benefits, then it would be far impossible like you have to get the same advantages as the CEOs get at their jobs. This is the difference of time and value maximization. Things were thought to be regularized rather than alike today those are being worse with the passage of time. It is not only for the American lower wage earning employees who have to get enough economic substances to fulfill the routine matters; it is needed to generate monetary opportunists to find financial aid for the poorer people. Without holding to the economic environment, the lifestyle they deserve for is in the agenda of policy makers along with reviewing statistical monetary indexing and calculation of wages. If review of historical data may be made, we may get a clearer insight about the earning differences, the CEOs in United States got twenty four times more than an ordinary worker in 1965. This was not an end, the proportion raised to thirty five times in 1978, then it went up to a huge figure of seventy one times in 1989. After the debt crisis in USA in 2000, the recovery brought a greatest differential figure, that showed that CEOs were earning three hundred times more than ordinary workers even who were working at their firms- A noticeable historical moment. After some time, the time turned in to a little change with top management remuneration rate with the economic bubble (worldwide) in 2008. History observed a decline in pay rate of CEOs or top managers at a slighter pace. But it did not mean to be a substantial increase in the pay outs of general workers. The hourly wage rate was suggested to be increased to increase the motivation level of the employees. It could cause in an extravagant state that vivid the opportunity for monetary and financial reforms within the organization. The economic bubble caused an extra ordinary unemployment and the wage rates were not said to be increased in near future. The remuneration declining rate for CEOs was six per cent approximately. The exact figure turned to 10.4 million USD from 11.07 million USD. Here we define the workers, the average work force include all the employees who work in an organization below top management (middle management, first line management and non-managerial employees i.e., clerical workers). The wage earning discrepancy between CEO and the general working employees was observed more in last decade. However the gender discrepancy was insignificant to be observed because females are emerging as top management seats in prestigious organizations. In Canada, the situation was considerably worse; the wage earning differences between top management and general worker was particularly bad. The top management was earning three hundred (300) times more than the general workers in 2007. It is a pretty rapid increase as compared to eighty five times more in 1995. However the similarity in culture and economic decisions are favorable in the case of Australia, but the wage earning rate is approximately more influential in Australia compared to Canada and United States. The general worker and top manager’s earning differences are less significant as compared to others two in Australia. The earning rate is ten per cent more in Australia than United States and Canada. The Gross Domestic Product (GDP) of Australia and Canada is almost alike but wage discrepancy is not significantly observable in Australia. The top management is earning sixty eight (68) times more than the general employees on an average. In Australia, the tax rates are so high for high income group that causes income differences at lower pace. The luxury taxes are enough to extract from high income group- no doubt a bad sign for those who belong to higher substances. The labor unions in Australia are very much powerful. They have enough strength to get their right according to Marxism from the top management. Australia, although being in area around economic bubble showed its hazardous effects over the national economy. Along with all the impacts occurred on the economy, the wage earning volume or rate could not be affected through the general practices which were running all over the world. Per hour minimum wage rate in Australia was 14.31 (AD) in 2009 according to the settings made by federal reserves. The substantial figures related to wage earnings are as follows Bureau of Labor Statistics of United States Department of Labor reveals the following Full time 100.1 million wage employee earned: 734 USD In Australia, the full time male workers earned 1264 AD whereas on the other hand female full time workers earned 1049 AD per week. In Canada, the hourly income remained on 24.81 USD with a prior comparison with 21.66 USD in 2008. The part time workers earned 16.24 USD per hour. The averages of the sectors in the indexes are calculated at median benchmark ratios. The median is the middle number which is the exactly average amount. The earning indexes are calculated by databases of labor and employment bureau. The main difference between United States, Canada and Australia’s earning standards is lying in the space of integrity of economic bubble. It was burst because of debt crisis particularly based upon United Sates of America. The strategy formulation as well as debt schemes in USA and Canada are similar. Australia remained in comparative safer zone because there was strong hold of labor unions. However the issue of unemployment was to be borne by Australia as well but its extent was not enough sufficient to beat the wage earning rate. The sect analysis of wage earning may reveal much more. The comparison of sectarian analysis among all these three countries will further reveal that the financial sector of United States was affected at the most. However the service industry got more shocks as compared to manufacturing ones. The more focus of American firms is service industry. The leasing institutions which were financing for home loans were totally vulnerable in the near past when world were sinking in debt crisis. When US treasury bills were on risk and services industry was on sinking stage, it was being predicted that US will have to file bankruptcy. Ultimately that effected on remuneration behavior of the firms and they strictly started lay off of the current employees as well. Australia, Canada and United States, all these three countries no doubt suffered from debt crisis in near past. Historical data shows a significant prosperity in United States if it is measured in term of wage earning rate. American firms, when the trend was moving towards services business, were offering highest wage rates. After when the gap was increased, it was with the least paying employers as well as the rate of employment was lowest. In Australia, the behavior in unemployment was appropriately according to overall world’s scenario but the wage earning rate was not significantly affected. In Canada, the situation was indifferent in the sense of fluctuations in wage earnings. It got lower but the difference was traded off because of overall effect in sector analysis. Wage earnings right now in Australia are well recovered as compared to past. They have enough tax paying parity available that they have recovered with their class differences so far. The luxury and high income tax rates are enough to reduce the differences. The top management and general working employees’ differences are still at increasing trend in United States and Canada but this phenomenon is being pretty recovered in Australia with sustainability. References 1. Average Salary in Canada | Average Canadian Salary | Wages. (n.d.). Living in Canada - Emigrating to Canada. Retrieved December 4, 2012, from http://www.livingin-canada.com/work-salaries-wages-canada.html 2. Heathcote, J., Storesletten, K., & Violante, G. L. (2008). The macroeconomic implications of rising wage inequality in the United States. Cambridge, Mass.: National Bureau of Economic Research. 3. Jones, E., & Macdonald, M. (1978). An examination of earning differentials in Australian manufacturing industry. Sydney: Dept. of Economics, University of Sydney. 4. Month. (n.d.). Employment, Hours, and Earnings from the Current Employment Statistics survey (National) Home Page. U.S. Bureau of Labor Statistics. Retrieved December 4, 2012, from http://www.bls.gov/ces/home.htm 5. Polachek, S. W., & Siebert, W. S. (1993). The economics of earnings. Cambridge: Cambridge University Press. Read More