IDEAS home Printed from https://ideas.repec.org/h/lum/prchap/01-67.html
   My bibliography  Save this book chapter

An Analysis of Public Pay Policy from the Perspective of Ethical and Legal Principles. Case Study: Draft Law on Public Employees’ Pay

In: Rethinking Social Action. Core Values in Practice

Author

Listed:
  • Viorel ROTILÄ‚

    (Associate Professor PhD, „Dunarea de Jos†University Galati, Galati, Romania)

  • Traian PALADE

    (PhD candidate, “Stefan cel Mare†University of Suceava)

Abstract

In this article, we analyze the public pay policy of Romanian public employees from the perspective of certain mandatory principles in this respect. Thus, we consider that a few relevant methodological aspects should be considered in the elaboration of the bill on the salaries of the public employees, in order to minimize the potential negative social impact; these aspects are: a) Through pilot studies, the bill should avoid the effects such as the law of unintended consequences. The unitary wage law of budgetary staff has a public policy nature. Any public policy assumes the risk of confronting the law of unintended consequences, in particular the Cobra effect (governors’ good intention has a contrary effect); b) Evidence-based action. Interventions must be based on prior studies and the political decision must be preceded by technical analysis. The absence of technical analyses is one of the major drawbacks of this political initiative, and evidence of inadequacy is already visible; c) The rules for the construction of the entire project must be defined beforehand. In other words, the construction must be based on clear principles and rules, capable of generating reasonable predictions on its consequences. We reviewed the bill from these perspectives. The study includes short impact assessments both on the medical staff – doctors, nurses and nursing staff – and on the non-medical staff. In this way, we have demonstrated some of the problems faced by this initiative regarding public employee pay policy.

Suggested Citation

  • Viorel ROTILÄ‚ & Traian PALADE, 2017. "An Analysis of Public Pay Policy from the Perspective of Ethical and Legal Principles. Case Study: Draft Law on Public Employees’ Pay," Book chapters-LUMEN Proceedings, in: Camelia IGNATESCU & Antonio SANDU & Tomita CIULEI (ed.), Rethinking Social Action. Core Values in Practice, edition 1, volume 1, chapter 67, pages 740-746, Editura Lumen.
  • Handle: RePEc:lum:prchap:01-67
    DOI: https://doi.org/10.18662/lumproc.rsacvp2017.67
    as

    Download full text from publisher

    File URL: https://proceedings.lumenpublishing.com/ojs/index.php/lumenproceedings/article/view/472/476
    Download Restriction: no

    File URL: https://proceedings.lumenpublishing.com/ojs/index.php/lumenproceedings/article/view/472
    Download Restriction: no

    File URL: https://libkey.io/https://doi.org/10.18662/lumproc.rsacvp2017.67?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Allegretto, Sylvia & Dube, Arindrajit & Reich, Michael, 2010. "Do Minimum Wages Really Reduce Teen Employment? Accounting for Heterogeneity and Selectivity in State Panel Data," Institute for Research on Labor and Employment, Working Paper Series qt7jq2q3j8, Institute of Industrial Relations, UC Berkeley.
    2. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    3. Sylvia A. Allegretto & Arindrajit Dube & Michael Reich, 2011. "Do Minimum Wages Really Reduce Teen Employment? Accounting for Heterogeneity and Selectivity in State Panel Data," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(2), pages 205-240, April.
    4. Benjamin Dachis & Robert Hebdon, 2010. "The Laws of Unintended Consequence: The Effect of Labour Legislation on Wages and Strikes," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 304, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Georgiadis, Andreas & Kaplanis, Ioannis & Monastiriotis, Vassilis, 2018. "The impact of minimum wages on wages and employment: evidence from Greece," LSE Research Online Documents on Economics 91959, London School of Economics and Political Science, LSE Library.
    2. Viorel ROTILA & Traian PALADE, 2017. "An Analysis of Public Pay Policy from the Perspective of Ethical and Legal Principles. Case Study: Draft Law on Public Employees’ Pay," LUMEN Proceedings, Editura Lumen, vol. 1(1), pages 740-746, December.
    3. Cabras, Stefano & Fidrmuc, Jan & de Dios Tena Horrillo, Juan, 2017. "Minimum wage and employment: Escaping the parametric straitjacket," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 11, pages 1-20.
    4. Adams, Camilla & Meer, Jonathan & Sloan, CarlyWill, 2022. "The minimum wage and search effort," Economics Letters, Elsevier, vol. 212(C).
    5. Joan Monras, 2020. "Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis," Journal of Political Economy, University of Chicago Press, vol. 128(8), pages 3017-3089.
    6. Arindrajit Dube & Attila S. Lindner, 2024. "Minimum Wages in the 21st Century," NBER Working Papers 32878, National Bureau of Economic Research, Inc.
    7. Joan Monras, 2019. "Minimum Wages and Spatial Equilibrium: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 37(3), pages 853-904.
    8. Phan Kim Dung, 2017. "The effects of minimum wage hikes on employment and wages in Vietnam’s micro, small, and medium enterprises," WIDER Working Paper Series 095, World Institute for Development Economic Research (UNU-WIDER).
    9. Zhang, Ming-ang & Lu, Shuling & Zhang, Sihan & Bai, Yanfeng, 2023. "The unintended consequence of minimum wage hikes: Evidence based on firms' pollution emission," Energy Economics, Elsevier, vol. 125(C).
    10. Marjan Petreski & Tereza KÐ¾Ñ ovska, 2018. "Regulatory impact assessment of the changes in the Minimum Wage Law," Finance Think Policy Studies 2018-10/17, Finance Think - Economic Research and Policy Institute.
    11. Mayneris, Florian & Poncet, Sandra & Zhang, Tao, 2018. "Improving or disappearing: Firm-level adjustments to minimum wages in China," Journal of Development Economics, Elsevier, vol. 135(C), pages 20-42.
    12. Alan Manning, 2021. "The Elusive Employment Effect of the Minimum Wage," Journal of Economic Perspectives, American Economic Association, vol. 35(1), pages 3-26, Winter.
    13. Neumark David, 2019. "The Econometrics and Economics of the Employment Effects of Minimum Wages: Getting from Known Unknowns to Known Knowns," German Economic Review, De Gruyter, vol. 20(3), pages 293-329, August.
    14. Shirley, Peter, 2018. "The response of commuting patterns to cross-border policy differentials: Evidence from the American Community Survey," Regional Science and Urban Economics, Elsevier, vol. 73(C), pages 1-16.
    15. John Addison & McKinley Blackburn & Chad Cotti, 2015. "On the robustness of minimum wage effects: geographically-disparate trends and job growth equations," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-16, December.
    16. Roy E. Bailey & Timothy J. Hatton & Kris Inwood, 2016. "Atmospheric Pollution and Child Health in Late Nineteenth Century Britain," CEH Discussion Papers 052, Centre for Economic History, Research School of Economics, Australian National University.
    17. Hanna Frings, 2012. "The Employment Effect of Industry-Specific, Collectively-Bargained Minimum Wages," Ruhr Economic Papers 0348, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    18. David Neumark & Brian Asquith & Brittany Bass, 2020. "Longer‐Run Effects Of Anti‐Poverty Policies On Disadvantaged Neighborhoods," Contemporary Economic Policy, Western Economic Association International, vol. 38(3), pages 409-434, July.
    19. Meltem Dayioglu & Müşerref Küçükbayrak & Semih Tumen, 2022. "The impact of age-specific minimum wages on youth employment and education: a regression discontinuity analysis," International Journal of Manpower, Emerald Group Publishing Limited, vol. 43(6), pages 1352-1377, March.
    20. Menon, Nidhiya & Rodgers, Yana van der Meulen, 2018. "Child labor and the minimum wage: Evidence from India," Journal of Comparative Economics, Elsevier, vol. 46(2), pages 480-494.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • A3 - General Economics and Teaching - - Multisubject Collective Works
    • I2 - Health, Education, and Welfare - - Education
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lum:prchap:01-67. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Antonio Sandu (email available below). General contact details of provider: https://proceedings.lumenpublishing.com/ojs/index.php/lumenproceedings .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.