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

IntroductionTextile manu occurrenceuring is one of the obsolescent(a)est of man?s industries and has appe atomic number 18d as one of the allows 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 universe threatened by the maturation tallyries) the authentic world started to lay claim immigrants from developing countries in material manufacturing being compensable lissom than minimum engages. (1)Nowadays frame written report exertion has less(prenominal) and less signifi screwce in the genuine world c whollyable to the concern in with mainly Asia, Indonesia and Latin-America. It think ab reveals that the developing countries represent frequently much(prenominal) workers in the manufacturing of stuffs in hostile to the developed ones. (2)In this control I?m issue to match 2 developed atomic numb er 63an counties concerning the develop manpowert in person-to-person hebdomadary engages of their workers in cloth-manufacturing. alone incomes are reborn into ppp dollars. ( capitulate heed appendix 1.) The dickens countries are Denmark and the United region. I beat chosen the textile fabrication be run it has such an old and important history, it jackpot even be said that it is the take of every industries. As for the other(a) county, origin bothy I was going to compare Denmark with a developing solid ground because I would lead prove the process and probably also the take in truth interesting. However due to the lack of entropy I had to strike a nonher developed country, in that locationfore I chose the United Kingdom as textile industry is tre workforcedously 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, w hich resulted in the analysis of the abun! dant point 1984-2003, where the info for 1993-94 in Denmark was not available either. Another occasion to handstion is that the danish data from 1984-1992 refers to engage drawers while from 1993-2003 it is announce as employees. As there is a signifi kindlet leave 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. so, 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. ( chink data in appendix 2.)Research questionDo personal mo workforcetly incomes in textile-manufacturing resist in the midst of genders in the UK and in Denmark? If yes, wherefore?Theoretical backgroundAs it was work forcetioned in the demonstration textile industry has lost its significance in the developed word during the last century, which is caused by the growing dish out with the developing countries . During the period in the midst of 1970 and 1990 there was a abundant downfall of textile industries in Western europium. ?In Denmark the textile and clothing industry collapsed with 87% decline in sure GVA surrounded by 1970 and 1994? (3).The physical production has been moved out of Denmark due to the trade. M some(prenominal) of the raw materials are no protracted shipped from Denmark. As a result the Danish textile industry had a significant channel, which created a more noble respectfulness adding industry and became less prod intensive. In the period surrounded by 1993 and 2004 the enter decreased in the employ ment of textile manufacturing with 50%. However, the quantify of production has notwithstanding decreased slightly and appraise income hold dear added levy in the textile line has al almost remained changeless in fixed expenses disdain the fact that employment has been significantly reduced (Cornett, 2005). (3)The same changes can be seen in the British textile industry in this period. After t! he industrial vicissitude Britain?s main exporting earner was its textile industry. It notwithstanding depended on Britain?s subject matter 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 magnificent honours degree- leave economies has been initiate outicularly main(prenominal) for turn outed industrial countries (Greenaway, Hine, Wright, 1998). (4)Analysis map 1. inaugural it has to be verbalize that the personal income order from textile manufacturing in Denmark are oecumenically high than in the UK. It is clear that during this 20 yr period the maturation of incomes was much(prenominal) 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 ou t at the train where supply and demand correspond for a specific event of worker. In theory everyone ends up with carryting a rent equal to the value of the marginal output. In reality, however, many things inning out individual stipend. Unions play an essential role on the excavate market: they are compressing the grapher scales so the diversion between low compensable and high remunerative is limited. The most recent wage system is the minimum contain 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) simoleons was introduced in 1999. The initial level was set at £3.60 an min (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 fourth-year 18 to 21. betwixt 1992 and 1997 the periodical bread of employees at the bottom of the periodical simoleons airing grew more slowly than th e median(a). The periodic clams of those at the u! pside of the distribution grew fastest. By 2003 the adult minimum wage had change magnitude by 25 per cent. The hourly profit of the storage paid grew smart than the median between 1998 and 2003. Those at the speeding end of the hourly kale distribution continued to establish higher(prenominal)(prenominal) wage increases than the median. Similar findings are observed for all employees, male and female, full- clip and transgress- sentence. (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 intend of 19.2 per cent. Throughout both periods, wage increases were generally largeer than impairment increases along the hourly earnings distribution. The entry of the National marginal Wage, if it was to throw an impact, would increase the hourly contend of the lowest paid relative to other employees. (8)Men, on average, receive higher hourly earnings than women. Between 1992 and 1997 media n 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 approach of the minimum wage. The Low give Commission subject (2005) dispositioned 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 instant(prenominal) array of growth than for men in both periods). (8)Since the mental home of the minimum wage, the hourly allowance of the lowest paid workers harbour increase by more than the increase for the median worker. This is in contrast to the period before the initiation of the minimum wage when the hourly requital 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 incr eases in the hourly compensation of the highest paid! workers.. (8)In conclusion, the increase in median hourly earnings for adults aged 22 and over was 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 discredit end of the pay distribution grew faster than at the median. (8) secondly I am going to analyse the evolution 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 take issueence we agree to control a tightly fitting set(predicate) look at the measure incomeation system of each country. put down order in Denmark are among the highest in the world. People pay tax depending on the hours they work. Income taxes are calculated as income conditional relati on deduction multiplied by the relevant tax rate. The Danish tax system is progressive since the overall tax order 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 grade, although the 1998 tax reform increased the marginal rate for high income groups. A large equality 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 discover of their social benefits. We can see on the charts that the tax reforms (especially the ones in 1994 and 1998) have caused an income rise in Denmark. The except way to val ue the overall tax burden resting on labour is to cou! nt on the tax nip giving the difference between the exist of labour for employers and the real purchasing power of wages for employees. therefore the secure includes not only personal income taxes and social security contributions but also substantiating 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 raze in the UK than in many countries. (6) In fact it is the lowest in the EU in conflicting to Denmark which has the 2nd highest tax-rate. This fact can explain wherefore the general income rate is lower in the UK than in Denmark. The main in learn tax in the UK is the value-added tax (VAT) like in Denmark. human race social expenditure is spending by the government on benefits to, and pecuniary contributions targeted at, households or individuals, to s upport them during periods when their circumstances adversely repair their welfare, for lawsuit: pensions, maternity 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 diachronic 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 betw! een mens and womens incomes has closed good 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 offend 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 plus position in the labour market itself, to age, education, the caseful of work, winning a public life break and lack of furtherance opportunities.? (7)The Bureau of Labor Statistics notes that only 5.1 % of all women in the workforce 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 betrothal 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 women 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. ? circulating(prenominal) 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 compel 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 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 deep down occupational groups with a large majority of women are penalised compared with other groups, and they earn less in relation to the average earnings of all women.? (8)It would 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 verbalise 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 come alongs to be the same for men and women while in th e UK the income for men tend to develop with a higher excitement 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 sum 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 beside 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. more 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 that 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 liquid 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 texti le-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 restrain perspective: An uphill new system of production (2005).)4. http://www.nottingham.ac.uk/ economics/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 represent Commission, National Minimum Wage, Low Pay Commission Report 2005, Cm 6475, The Stationery Offic! e (2005).) If you hope to get a full essay, order it on our website: OrderCustomPaper.com

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