The Global Financial Crisis (GFC) is the most significant worldwide economic catastrophe since the Great Depression of 1929. The sub-prime mortgage crisis is an example of the financial crisis that affected global financial markets worldwide. Give some other examples of financial crisis events in your discussion below.
Discuss the possible causes of the financial crisis. Do you think GFC could be repeated again? Discuss.
Explain the scale and impact of GFC in economies of different countries including your own country. Identify some of the actual or proposed reforms which have eventuated.
In order to test the hypothesis of the child penalty as a compensating wage differential, the following methodology, divided in three parts, has been conducted. A first step was to investigate if motherhood really affects the job characteristics, i.e. if not only the pecuniary but also the non-pecuniary job characteristics change after motherhood and thus the loss of wage might be compensated with an increase in amenities. In order to estimate changes in job characteristics around and after motherhood, an event study analysis has been used which studies the effects of first birth on a variety of job characteristics. A second necessary step was to show if and how certain job features enter the utility of mothers. According to theory of compensating wage differentials both pecuniary and non-pecuniary characteristics determine jointly the utility of a worker. In case a mother is willing to give up part of her income in order to have a more family friendly job, certain job characteristics have to compensate for this loss in wage and thus raise the utility of a mother. In order to test this empirically, satisfaction regressions has been used. In a last step the actual compensating wage differential has been measured, i.e. how much of their wage mothers are willing to give up for having a job with more amenities (less disamenities). Therefore as a last step a hedonic wage regression has been run including certain (dis-) amenities as control variables. Conclusion The conclusion of the above discussion reveals that the compensating wage differentials have been studied by many of the analysts around the globe using different methodologies and statistics. These studies helped the users understanding the trend regarding compensating wage differentials and the impact on workers. REFERENCES Abraham, J, Lluis, S. (2008) “Compensating Differentials and Fringe Benefits: Evidence from the Medical Expenditure Panel Survey 1997-2004”, retrieved on July 28th, 2009 from Christie, L. (2003) “America’s most dangerous jobs – The top ten most dangerous jobs in America”, CNN Money, retrieved on 28th July, 2009 from Dumond, J. M., Hirsch, B. T., & MacPherson, D. A. (1999). “Wage Differentials Across Labor Markets and Workers: Does Cost of Living Matter?”. Economic Inquiry, 37(4), pp. 577-608. Dupuy, A. & Smits, W. (2009), “How Large is the Compensating Wage Differential for R&D Workers?” Retrieved on July 28th, 2009 from Felfe, C. (2006), “The child penalty – A compensating wage differential”, retrieved on July 28th, 2009 from Lanfranchi, J., Ohlsson, H., & Skalli, A (2009) “Compensating Wage Differentials And Shift Work Preferences* Evidence from France”, retrieved on July 28th, 2009 from McDuff, E. M. (1999). “Social Support and Compensating Differentials in the Ministry: Gender Differences in Two Protestant Denominations”. Review of Religious Research, 40(4), pp. 307-330. Mcgoldrick, K. (1995). “Do Women Receive Compensating Wages for Earnings Uncertainty?”. Southern Economic Journal, 62(1), pp. 210. Miller, P., Mulvey, C., & Norris, K. (1997). “Compensating Differentials for Risk of Death in Australia”. Economic Record, 73(223), pp. 363. Osburn, J. (2000). “Interindustry Wage Differentials: Patterns and Possible Sources”. Monthly Labor Review, 123(2), pp. 34. Polachek, S. W. & Siebert, S. W. (1993) Economics of Earnings. Cambridge University Press. Roberts, K., Burton, J. F., & Bodah, M. M. (Eds.). (2005). Workplace Injuries and Diseases: Prevention and Compensation : Essays in Honor of Terry Thomason. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. Schettkat, R. (1993). “Compensating Differentials? Wage Differentials and Employment Stability in the U.S. and German Economies”. Journal of Economic Issues, 27(1), pp. 153. Schumacher, E. J., & Hirsch, B. T. (1997). “Compensating Differentials and Unmeasured Ability in the Labor Market for Nurses: Why do Hospitals Pay More?”. Industrial & Labor Relations Review, 50(4), pp. 557-579. Siebert, W. S. & Wei, X (1998), “Wage Compensation for Job Risks: The Case of Hong Kong”, Asian Economic Journal, Vol 12 No. 2, retrieved on July 28th, 2009 from “The Human Development Index. A better way of measuring welfare? Notes on Nick Crafts’, ‘The human development index and changes in standard of living: some historical comparisons”. European Review of Economic History, Vol 1, (1997), retrieved on July 28th, 2009 from >GET ANSWER