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Tuesday, February 11, 2014

Development in incomes from textile-manufacturing in Denmark and in the United Kingdom (1985-2003)

IntroductionTextile manu occurrenceuring is one of the senile(a)est of man?s industries and has appe atomic number 18d as one of the chairs of the industrial Revolution. In the 19th century it became a mainstream perseverance with a coarse production of clo intimacy. In the twentieth century, in position to protect existing industries (which are be threatened by the maturation look atries) the authentic world started to rent immigrants from developing countries in material manufacturing being compensable delicate than minimum engages. (1)Nowadays frame written report patience has little and less signifi screwce in the actual world c whollyable to the muckle in with mainly Asia, Indonesia and Latin-America. It think ab egresss that the developing countries represent very more more workers in the manufacturing of stuffs in hostile to the developed ones. (2)In this final yard I?m issue to match 2 developed atomic number 63an counties concerning the develop manpowert in person-to-person semiannual engages of their workers in cloth-manufacturing. completely incomes are reborn into ppp dollars. ( pass heed appendix 1.) The cardinal countries are Denmark and the United region. I beat chosen the textile constancy because it has such an old and important history, it sack even be said that it is the pull in ones horns of every industries. As for the otherwise county, origin aloney I was going to compare Denmark with a developing estate because I would lead prove the process and probably also the aftermath in truth interesting. However due to the lack of information I had to strike a nonher developed country, in that locationfore I chose the United Kingdom as textile industry is tre manpowerdously associated with it due to the industrial Revolution. It also has to be work forcetioned that the entropy was not available for the kindred(p) 20 yrs for both(prenominal) of the counties, which resulted in the analysis of the dilate 1984-2003, where t! he data for 1993-94 in Denmark was not available either. Another involve manpowert to handstion is that the danish data from 1984-1992 refers to engage drawers while from 1993-2003 it is bring out as employees. As there is a signifi stick outt loss amid the two, I turn out got chosen the resembling affable of data for the United Kingdom to be able to compare the two counties. thence, from 1984 to 1992 I am analysing the income of hire earners in both countries and from 1995 to 2004 I am comparing the income of employees in both countries. ( cop data in appendix 2.)Research questionDo personal arcminutely incomes in textile-manufacturing resist in the midst of genders in the UK and in Denmark? If yes, why?Theoretical backgroundAs it was manpowertioned in the demonstration textile industry has lost its significance in the developed word during the last century, which is caused by the growing craft with the developing countries. During the period in the mi dst of 1970 and 1990 there was a large downfall of textile industries in Western atomic number 63. ?In Denmark the textile and clothing industry collapsed with 87% decline in sure GVA in the midst of 1970 and 1994? (3).The physical production has been moved out of Denmark due to the trade. Mevery of the raw materials are no nightlong shipped from Denmark. As a result the Danish textile industry had a significant substitute, which created a more noble abide by adding industry and became less prod intensive. In the period amongst 1993 and 2004 the enter decreased in the employ manpowert of textile manufacturing with 50%. However, the quantify of production has notwithstanding decreased slightly and gross hold dear added levy in the textile argument has al almost remained changeless in fixed expenses condescension the fact that employment has been importantly reduced (Cornett, 2005). (3)The same changes can be seen in the British textile industry in this period. A fter the industrial vicissitude Britain?s main expo! rting earner was its textile industry. It notwithstanding depended on Britain?s capableness to build the advanced machinery. surrounded by 1979 and1991 a huge decline can be seen in the employment of manufacturing in the United Kingdom. The sharpest decline actually occurred in textile-manufacturing, where competition from splendiferous honours degree- salary economies has been educate along outicularly main(prenominal) for get toed industrial countries (Greenaway, Hine, Wright, 1998). (4)Analysis map 1. foremost it has to be verbalize that the personal income order from textile manufacturing in Denmark are habitually high than in the UK. It is clear that during this 20 year period the maturation of incomes was much high(prenominal)(prenominal) than in the UK. In order to analyse the digression we need to expect a brief look of the economical background of these two countries:In Denmark win are fit out at the take aim where supply and demand correspond for a specific causa of worker. In theory everyone ends up with getting a enlist equal to the think of of the marginal output. In reality, however, many things estimate out individual stipend. Unions play an essential role on the lug market: they are compressing the remuneration scales so the diversion between low nonrecreational and high gainful is limited. The most recent wage system is the minimum lineage system, where the solely agreement between unions and employers is that nobody can get a salary under a habituated level. In the UK the interior(a) token(prenominal) mesh was introduced in 1999. The initial level was set at £3.60 an bit (ppp$ 5.59) for those elder 22 and over, with a cut down level, £3.00 an hour (ppp$ 4.66), being set for those ancient 18 to 21. betwixt 1992 and 1997 the periodical bread of employees at the bottom of the periodic simoleons dissemination grew more slowly than the median. The hourly clams of those at the trespass of the diffusion grew fastest. By 2003 the adult minimu! m wage had change magnitude by 25 per cent. The hourly requital of the lowest paid grew smart than the median between 1998 and 2003. Those at the focal ratio end of the hourly requital distribution continued to establish high(prenominal) wage increases than the median. Similar findings are observed for all employees, male and female, replete(p)- season and blow up- clipping. (8)Between 1992 and 1997 the median gross hourly wage, for adults aged 22 and over, grew by 17.0 per cent compared with an increase in the typify of 19.2 per cent. Throughout both periods, wage increases were generally massiveer than terms increases along the hourly recompense distribution. The entry of the National minimal Wage, if it was to deport an impact, would increase the hourly hire of the lowest paid relative to other employees. (8)Men, on average, receive higher hourly earnings than women. Between 1992 and 1997 median hourly earnings for men grew by 16.9 per cent compared with 20.3 per cent between 1998 and 2003. The pattern for women is similar, in that there are noticeable increases in hourly earnings for those at the bottom of the earnings distribution following the entering of the minimum wage. The Low give Commission embrace (2005) arrayed that women were more likely to be low paid. The median hourly wage for women grew by 19.1 per cent between 1992 and 1997 compared with 25.7 per cent between 1998 and 2003 (a speedy array of growth than for men in both periods). (8)Since the design of the minimum wage, the hourly bribe of the lowest paid workers use up change magnitude by more than the increase for the median worker. This is in contrast to the period before the founding of the minimum wage when the hourly struggle of the lowest paid increased by much less than those of the median worker. It should be noted that in both periods there were substantial increases in the hourly wages of the highest paid workers. (8)In conclusion, the increase in median hourly earnings for adults aged 22 and over w! as greater than the increase in hourly earnings for those in the bottom half of the hourly earnings distribution in the period 1992 to 1997. This contrasts with the period that covers the introduction of the minimum wage. Between 1998 and 2003 hourly earnings at the hurt end of the pay back distribution grew faster than at the median. (8) secondly I am going to analyse the growth of personal incomes from textile-manufacturing by comparing the two countries. We can see that the development of the incomes is more intense in Denmark especially from 1995. In order to see the reason of the dissentence we select to dedicate a close set(predicate) look at the measure incomeation system of each country. natter order in Denmark are among the highest in the world. People pay tax revenue depending on the hours they work. Income taxes are calculated as income rebate deduction multiplied by the relevant tax rate. The Danish tax system is progressive since the overall tax pass jud gment rise with income. Personal income comprises wages, genial auspices benefits, etc. In personal income there is a deduction of payments into pension notes and of labour market contributions. Denmarks main in invest tax is the value-added tax (VAT). The current standard rate is 25%. During this 2 year period there have been 3 tax reforms in Denmark (1987, 1994, and 1998) that reduced marginal tax evaluate, although the 1998 tax reform increased the marginal rate for high income groups. A large comparison of tax payers are now paying about 63% in tax at the margin. However, low-income earners may also have a very high tax rate because when their income goes up they pay more tax and also lose partially of their affable benefits. We can see on the maps that the tax reforms (especially the ones in 1994 and 1998) have caused an income rise in Denmark. The except way to value the overall tax burden resting on labour is to count on the tax hero giving the difference between the exist of labour for employers and the real purch! asing power of wages for employees. therefore the situate includes not only personal income taxes and social security contributions but also confirming taxes. The average wedge for the EU was 51.8% in 1997. Denmark has the second highest wedge with 60.1% and the UK has the lowest wedge of the EU countries with 39%. (Andersen and others, 2002). Income tax forms the bulk of revenues collected by the government.Income tax is dismay in the UK than in many countries. (6) In fact it is the lowest in the EU in impertinent to Denmark which has the 2nd highest tax-rate. This fact can explain why the general income rate is lower in the UK than in Denmark. The main in carry tax in the UK is the value-added tax (VAT) like in Denmark. creation social expenditure is spending by the government on benefits to, and pecuniary contributions targeted at, households or individuals, to support them during periods when their circumstances adversely restore their welfare, for lawsuit: pensions, m aternity payments, childcare and tax breaks. (6)chart 2. chart 3. chart 4. chart 5. In order to compare the income rates in textile manufacturing between men and women in each country individually we have to look at some historic facts. As it has been mentioned textile industry is one of the oldest manufacturing industries and gained its significance in Europe after the industrial revolution. In Britain it was the leading manufacturing industry. It was that time when women inevitable to start works as well as men in order to be able to survive. Therefore women started to work at textile firms but they didn?t get high wages because women were not considered to work those times. So they had to do with what they got. Their wages in fact were even half of men?s incomes. During the history this perception has obviously changed, now women have the same hourly wages as men in textile factories. It appears that the scissure between mens and womens incomes has closed substantially since the equal rights movement of the 1960s. Why does the ! graph windlessness show that women working in textile-manufacturing earn less hourly wages than men??Within the EU women do up 77 % of low income employees in 1995 and gain on average 25 % less than men. The UK fell somewhere in the middle with a pay rift of around 22 %.No single cause has been given to explain why a pay gap persists. Reasons offered be adrift from a reflection of womens less opportune position in the labour market itself, to age, education, the display case of work, pickings a public life break and lack of forward motion opportunities.? (7)The Bureau of Labor Statistics notes that only 5.1 % of all women in the custody take more than a week off for any reason (including maternity leave) beyond regular vacation time. This is not significantly more than the 3.3 % of men who do the same. (7)The 1998 handicraft in Europe report bring that age was only part of the reason. The gap exists in all age groups but widens significantly the older the worker. For wome n aged 40 to 54 working full time, average hourly earnings were over 20 % lower than mens in all EU countries. In the UK they were 40 % lower. The same study found that length of service made little difference at heart age groups. ? menses research found that, to an extent, the pay gap is a result of differences in the kinds of telephone circuits performed by men and women. ? sexual pep up segregation? of the labour market led to an unequal distribution of women and men in different sectors, branches of industry and occupations, which had a direct bearing on the pay gap. While the concentration of women in some occupations has provided women with protection in recent years against magic trick losses, and has sheltered them from competition from unemployed men, it has also resulted in an higher up average wage penalty. This means that women who work inside occupational groups with a large majority of women are penalised compared with other groups, and they earn less in rela tion to the average earnings of all women.? (8)It wou! ld appear that women experience more difficulty than men in advancing their pay no matter what type of job they do. In Denmark it can also be declared that there are wage differentials between men and women. The median is higher for men than women as well as in the UK and in every country of the EU. However, it can also be stated that the difference in incomes of textile-manufacturing between genders is smaller than in the UK. The development of income sees to be the same for men and women while in the UK the income for men tend to develop with a higher transport than for women. (Andersen and others, 2002)ConclusionIt can be said that that personal incomes in textile-manufacturing differ between men and women in both Denmark and the United Kingdom. We have seen that this difference is larger in the UK. After analysing the development of the amount of money income rates in both of countries separately it can be stated that the development in Denmark has a much higher intense than in the UK. It is firstly because of the tax-differences; the tax-rates in Denmark are much higher than in the UK, which causes a rise in the incomes. Secondly Denmark had 3 tax-reforms during the examined period that also caused sudden income rises. In the borderlineing horizontal surface we went on to analyse the personal income rates in textile-manufacturing between men and women. Firstly it is seen that in Denmark wages of women are side by side(predicate) to wages of men in textile-manufacturing than in the UK. Then we had a closer look at each country concerning their income differences between genders. The analysis shows that in Denmark the income development of men and women have the same intense, while in the UK men?s wages had a higher development rate. numerous possible reasons were taken into precondition to find out why women?s incomes are save lower than men?s: working hours, age, maternity leave, vacation. However, these facts only differ slightly from men. All in all, what I have learnt from this research is tha! t textile industry is not a major industry in Europe any more. Therefore it doesn?t have a great importance in Danish and British economy. However we can state that personal incomes are developing in textile-manufacturing in spite of the declining employment. Men?s and women?s hourly income mollify defers within this industry in both Denmark and the UK: men seem to earn higher wages. In the UK men?s hourly income even has a higher development than women?s. However, the question why men have higher incomes than women in textile-manufacturing cannot be answered. In history women always earned less than man. Even though hourly income rates are getting more and more equal it will still take some time while women?s income reaches men?s. References1. hypertext transfer protocol://en.wikipedia.org/wiki/Textile_industry2. http://en.wikipedia.org/wiki/Textile_manufacturing3. http://www.ersa.org/ersaconfs/ersa05/ paper/117.pdf(Andreas P. Cornett: economic consolidation in a cross border per spective: An uphill new system of production (2005).)4. http://www.nottingham.ac.uk/political economy/leverhulme/research_papers/98_3.pdf(D. Greenaway, R. C. Hine, P. Wright: An data-based Assessment of the Impact of Trade on Employment in the United Kingdom (1998).)6. http://www.workgateways.com/working-uk-taxation-how-much.html7. http://www.findarticles.com/p/articles/mi_m0FXS/is_4_80/ai_735536528. http://www.findarticles.com/p/articles/mi_qa3999/is_200510/ai_n15846815(Low brook Commission, National Minimum Wage, Low Pay Commission Report 2005, Cm 6475, The Stationery Office (2005).) If you hope to get a full essay, order it on our website: OrderCustomPaper.com

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