Macroeconomic Aspects of Gains and Losses in Socio-Labor Sphere

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Macroeconomic Aspects of Gains and Losses in Socio-Labor Sphere

Journal Title: Демографія та соціальна економіка - Year 2014, Vol 21, Issue

Abstract

Gains and losses of the participants of socio-labor relations are analyzed. The winners and losers emerge as a result of macroeconomic shocks and because of minor macroeconomic changes. The article discusses various forms of gains and losses in socio-labor sphere: unemployment, gains/losses in income, wage arrears, involuntary part-time employment, human capital depreciation. The negative and positive results of the functioning of a national economy are distributed between employers and employees, skilled and unskilled workers, young workers and specialists of older age, males and females. Some social groups suffer mostly from instability of jobs, other – from losses of real wages and so on. One solution to unemployment reduction is replacement of layoffs by reduction of the real wage. Winners and losers appear as a result of economic dynamics. One of the macroeconomic events in the last 5 years was the economic recession since 2008. The results of this recession were income and employment losses. The distribution of these losses between different countries, industries, social groups is uneven. Two main forces regulate the distribution of gains and losses in the national economy: free market and state. The role of these forces in influencing gains and losses of the participants of socio-labor relations differ from country to country. The socially justifiable redistribution of gains and losses caused by macroeconomic shocks is one of the concerns of contemporary government. The importance of the transformation of macroeconomic changes into economic gains and losses is stressed. Inflation and indexation, debts, the exchange rates policy play important role in this transformation. By indexing to some measure of the price level the government can regulate the losses caused by inflation. The distribution of gains and losses in the Ukrainian economy is influenced by macroeconomic situation in the world economy. The article shows what a relatively stable exchange rate implies for employers and hired workers – consumers.

Authors and Affiliations

V. V. Mortikov

Keywords

gains and losses of the participants of socio-labor relations transformation of macroeconomic changes into economic gains and losses unemployment and income losses inflation indexation exchange rates policy

EP ID EP287185
DOI 10.15407/dse2014.01.158
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