"Minimum wages","37%of full-employees received less than 68% of average income\1. Many dont live in low income households\2. Poverty depends on dependants3. Many in poverty are unemployed\4. National minimum wage should still help\Protects weak employees(eg with other responsibilities)\It causes unemployment,0.5average minimum raises wage costs by 1%(depends on firm)\Labour productivi"
"ty can increase:","1. Efficiency wage effect(can afford more food)\2. Better management\USA no unempl. evidence. UK wage councils were abolished because inconsistent with market flexibility."
"The Natural rate of unemploymnent-8%","Does not affect inflation and can be reduced by supply side measures\Policies:\1. Increase productivity(new capital,investment,training)\2. Encourage employers to offer jobs to LTerm unemployed\3. Remove disincentives(high marginal tax)\4. increase geogr.flexibility\5. Reduce work searching costs by work experience"
"Natural unempl. is coz:","1. Trade unions+social security generocity\2. Terms of trade in favour decrease it\3. Oil kept lower\4. Skill mismatch(rapidly restructuring industry)"
"The EU social charter(UK opt out)was set against social dumping(multinationals go for least legislation+low wage","Threaty came into effect wo charter(UK vetoed). UK accepted:\Multinationals must inform labour\Part-time(mainly women) have equal rights\Working time(max48h,4weeks paid holiday)"
"Wages are now determined locally,performance related pay, 73 72%was collective, now 47%","2 types of labour-core(well skilled,multifunctional)+peripheral(can be hired/fired easily)\Numerical(lot in UK)and functional flexibilities exist. Numerical flex. provides more lowpaid jobs, employed have less poverty\UK has no future as low wage economy,tecnical markup must be high"
"Union data","First time<50%. Proffesionals52,clerical28,sales11,80full time,56male,62public,28private. Union denity greatest at non-privatised firms(rail83).50+age38%,<20age5%\New PTC 01.96 union-public service,tax,commerce union"
"Industry in UK","1. Manufacturing declines because of losing competitivenes(6%from world)\2. Current Ac bad(UK losing internat.competitivenes)\3. Services is+,but 5%only from worlds\Competitivenes of a nation is its ability to produce under free/fair market cond.goods that meet the test of int.market,while maintaining and expanding GDP/head in L-term"
"Cost competitiveness","1. RULC-falling,still more than competitors\a. Earnings-rise fast\b. Productivity-good\Price competitiveness\1. Inflation-high,Purchasing Power Partity theory suggest that ase exchange falls UK can still be competitive\Real Exchange rate\Uk record could be better in nonprice(high tech) areas"
"OFT+MMC(should merge soon)looks at","1. Structure(maret share)\2. Conduct(complaints,advertising,mergers,price leadership)\3. Performance(price rises relative to inflation)"
"Privatisation-transfer of govowned assets to private sector","Denationalisation-sale\Deregulation-busses etc\Contracting out+francising-gov pays for private company\It raised 40b. Methods\Floatation by an offer for sale in stock exchange-state can lose money(BT) or become unpopular(BP)\Sale by tender-hard for small investors\Private sale-can be cheap(rover)\Management buyout!efficien"
"Nat.Industries gain in static+dynamic","efficiency.Use isoquants+contestable markets to show efficiency. Privatised firms can find new places to sell and increase exports. Voucher schemes.Cross subsidation. Others follow England.Selling off the family silver-Lord Stocton.Merchant Banks sel privatised shares."