Income Policy for Workers and National Economy 1.

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Presentation transcript:

Income Policy for Workers and National Economy 1

Blue line: portion for wage in US Red line: portion for profit in US 2

Income Policy Pro-capital income policy –To decrease the ratio of workers wage in national income Pro-labor income policy –To increase the ratio of workers wage in national income Government policies to influence workers’ income –Tax policy –Social policy –Labor market policy 3

Income Policy Pro-capital income policy Labor flexibility, wage flexibility Decreasing minimum wage Deteriorating labor laws Decreasing corporate tax Minimizing the scope and application of collective bargaining Exemption from Income tax for capital profit Enforcement of Wage restriction Pro-labor income policy Labor stability, wage stability Increasing minimum wage Improving labor laws Increasing corporate tax Expanding the scope and application of collective bargaining Increase of income tax for capital profit Promotion of wage increase 4

Ordinary workers (operator- level) monthly wage (USD) by JETRO Kuala Lumpur: Bangkok: Jakarta: Hanoi: 111, HCM: 130, Da Nang: Phnom Phen: 82 6.Mumbai: 403, Chennai: 260, Bangalore: Dhaka: 78 8.Manila: 325, Cebu: Singapore: 1, Hong Kong: 1, Taipei: 1, Seoul: 1, Nagoya: 3, GDP per Capita (USD) By World Bank 1.Malaysia: 9,656 2.Thailand: 4,972 3.Indonesia: 3,495 4.Vietnam: 1,411 5.Cambodia: India: 1,489 7.Bangladesh: 8.Philippines: 2,370 9.Singapore: 46, Hong Kong: 34, Taiwan: 12.Korea: 22, Japan: 45,902 5

Annual wage (USD) Kuala Lumpur: 4,128 2.Bangkok: 3,432 3.Jakarta: 2,508 4.Hanoi: 1,332, HCM: 1,560, Danang: 2,400 5.Phnom Pehn: Mumbai: 4,836, Chennai: 3,120 7.Dhaka: Manila: 3,900, Cebu: 2,340 9.Singapore: 15, Hong Kong: 16, Taipei: 12, Seoul: 20, Nagoya: 45,648 GDP per Capita Malaysia: 9,656 2.Thailand: 4,972 3.Indonesia: 3,495 4.Vietnam: 1,411 5.Cambodia: India: 1,489 7.Bangladesh: 8.Philippines: 2,370 9.Singapore: 46, Hong Kong: 34, Taiwan: 12.Korea: 22, Japan: 45,902 6

Japan (Nagoya) 7 45,902 45, Worker GDP

Vietnam (Hanoi) Worker GDP

Korea(Seoul) 9 22,424 20,352 2,072 Worker GDP

Indonesia (Jakarta) Worker GDP

Thailand (Bangkok) Worker GDP

Malaysia (Kuala Lumpur) Worker GDP

Philippines (Manila) Worker GDP

Monthly wages and benefits (USD) for 48-hour work week International Herald Tribune, May Dhaka: 37 USD Phnom Penh: 120 USD Ho Chi Minh: 145 USD Semarang: 190 USD Jakarta: 300 USD Guangzhou: 500 USD 14

National income for workers Underdeveloped countries worker 15

National income for workers Developing Countries worker workers 16

National income for workers Developed Countries worker 17

18 National income workers National income workers A

19 National income workers National income workers B

High Income Society for Workers Wage increase inside factory – strong and effective collective bargaining Social wage (social security) outside factory –Fair and just taxation system Strong Union Power 20