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U.S. unemployment: trends and structural peculiarities

Petrovskaya N.E. Institute for the U.S. and Canadian Studies RAS (ISKRAN), Moscow, Russian Federation ( vitern@mail.ru )

Journal: Regional Economics: Theory and Practice, #8, 2018

Subject This article examines the U.S. unemployment current situation, as well as its features among socio-demographic groups and the states.
Objectives The article aims to identify the main problem areas of unemployment among age, racial and ethnic groups, among persons with different levels of education, at the federal and regional levels, as well as differentiate approaches to employment and reduction of the number of unemployed.
Methods For the study, I used the methods of economic-statistical, logical, and comparative analyses, as well as the systems approach.
Results The study shows regional differences in the unemployment rate among different socio-demographic groups, as well as across the states.
Conclusions Young people are at high risk of unemployment at the beginning of their working life. The study emphasizes the importance of unemployment monitoring by different population group in order to identify risk zones, develop measures to curb unemployment and reduce the gap in its level among different population groups.


Subsistence wage public policy: Evidence from the USA

Petrovskaya N.E. Institute for the U.S. and Canadian Studies RAS (ISKRAN), Moscow, Russian Federation ( vitern@mail.ru )

Journal: Regional Economics: Theory and Practice, #2, 2018

Importance This paper discusses the main factors, principles of and trends in establishing the minimum wage, and the mechanism of implementation of its guarantee at the federal, state, and local levels.
Objectives The paper aims to examine the legislative basis for establishing the minimum wage at all governmental levels, determine its size, conduct a comparative analysis of the recipients of minimum wage by various parameters, and describe the specifics of establishing the minimum wage at the regional level.
Methods The paper uses the systems, economic-statistical, logical, and comparative analysis approaches. The study analyzes the U.S. legislative acts and U.S. Bureau of Labor Statistics data.
Results The paper presents certain results of the empirical analysis of subsistence wage establishing practices at different levels in the USA.
Conclusions The minimum wage in countries where most of the employed are working on an hourly rate is one of the basic social guarantees and supports the standard of living of the least-paid population groups. The U.S. practices are of practical interest for countries with significant wage differences across regions, particularly Russia.


The working poor in the USA

Petrovskaya N.E. Institute for the U.S. and Canadian Studies, Russian Academy of Sciences, Moscow, Russian Federation ( vitern@mail.ru )

Journal: Economic Analysis: Theory and Practice, #5, 2018

Importance The article reviews the trends in the spread of poverty among the working population, identifies the most vulnerable groups of workers, whose income is below the poverty line.
Objectives The aim is to analyze factors making the workers poor and identify risks of incidence of poverty among the working population.
Methods The study employs the systems approach, historical, economic-statistical methods, and comparative analysis.
Results The study of the number and proportion of workers with income below the poverty line shows significant differences between these indicators among partially and fully employed, depending on the level of education, race and ethnic group. Those who do not have general and special education, black and Hispanic Americans, families with children headed by women are the most vulnerable.
Conclusions As the findings show, the low level of education is one of the main factors of poverty. The American experience demonstrates the importance of government support to training and educational programs. Achieving higher levels of education reduces the incidence of poverty, but families with children need assistance anyway.


Employment at the U.S.-based enterprises of foreign companies

Petrovskaya N.E. Institute for U.S. and Canadian Studies RAS, Moscow, Russian Federation ( vitern@mail.ru )

Journal: Economic Analysis: Theory and Practice, #7, 2017

Importance The article examines employment trends at U.S.-based majority-owned affiliates of foreign companies.
Objectives The purpose is to conduct a comprehensive study of the role of foreign companies in the U.S. employment by industry and by state.
Methods The paper employs the systems approach, comparative analysis, economic and statistical methods. The calculations rest on the data of the Bureau of Economic Analysis Surveys of Foreign Direct Investment in the United States and financial and operating data of majority-owned U.S. affiliates of foreign multinational enterprises.
Results The analysis of employment trends at U.S.-based enterprises of foreign companies unveils their role in the U.S. employment, especially at the industry and state level. The manufacturing industry accounts for the largest share of employed, particularly, the car, food and chemical industries. The research contributes to the development of methodological approaches to analyzing the interconnections between foreign direct investments and employment in host countries. The findings may be useful for foreign direct investment policy shaping.
Conclusions and Relevance The research highlights interrelations between foreign direct investment and employment in host countries, and the influence of host country's FDI policy.


The role of small business in employment: Evidence from the USA

Petrovskaya N.E. Institute for USA and Canadian Studies of Russian Academy of Sciences, Moscow, Russian Federation ( vitern@mail.ru )

Journal: Financial Analytics: Science and Experience, #3, 2017

Importance The article reviews the significance of small businesses for creating and preserving jobs, and illustrates the USA where small businesses account for about a half of people employed in the private sector.
Objectives The research presents a comprehensive study into the role of small businesses in terms of job opportunities and preservation of the number of jobs.
Methods Drawing upon a systems approach, economic, statistical and logic methods, comparative analysis and initial sources, I reviewed what role small businesses played in employment in the USA.
Results I analyzed principal employment trends in small business during the global crisis and afterward. I found issues and difficulties employees of small businesses came across and specifics of the U.S. criteria used to classify any entity as a small business. The article evaluates the breakdown of employees of small businesses by industry and U.S. state.
Conclusions and Relevance Small businesses account for 49 percent of the employed in the U.S. private sector. There are some industries of the U.S. economy where small businesses prevail in terms of the number of jobs. Considering economic and social importance of small business, the USA provides comprehensive support to its development.


Age structure of employment in conditions of increase in retirement age in Russia

Petrovskaya N.E. Institute for the U.S. and Canadian Studies, Russian Academy of Sciences, Moscow, Russian Federation ( vitern@mail.ru )

Journal: Economic Analysis: Theory and Practice, #1, 2019

Subject The article shows the status and trends in the workforce age structure in conditions of raising the retirement age, the specifics of employment in pre-pension and pension age groups.
Objectives The aim is to examine problems related to employment of pre-pension and pension age individuals in Russia as compared with other countries, specifics of employment, the unemployment nature, and government regulation in this field.
Methods The theoretical and methodological analysis rests on comparative information and statistical data of the G7, OECD countries and Russia, polls results, previous studies, using the systems approach.
Results The analysis of changes in employment of individuals of pre-retirement and retirement age in Russia and other countries, problems related to job search, specifics of unemployment enabled to unveil current trends in the context of retirement age increase in Russia. The increasing importance of participation of these population groups in labor force requires certain government measures to mitigate risks inherent in employment. Raising the retirement age will aggravate problems of retraining in conditions of changed demand in the labor market.
Conclusions Increasing the retirement age in Russia will necessitate the adaptation of the government policy to the changed structure of labor force, its retraining, the introduction of new regulators. Efficient measures include organization of training for individuals of pre-retirement age, legislative protection against age discrimination in employment.


Management of regional retirement systems in the USA

Emel'yanov S.V. Institute for the U.S. and Canadian Studies, Russian Academy of Sciences, Moscow, Russian Federation ( es73@mail.ru )

Petrovskaya N.E. Institute for the U.S. and Canadian Studies, Russian Academy of Sciences, Moscow, Russian Federation ( vitern@mail.ru )

Journal: Digest Finance, #1, 2017

Importance The article examines the specifics of socio-economic policies for retirement benefits at the level of states and local authorities, specifics of managing public defined retirement plans of the regional level in the USA, which are funded through contributions of states’ governments, local authorities, employees, as well as return on investment of amounts earmarked for retirement benefits in shares, bonds and other instruments.
Objectives The research comprehensively reviews the role of regional pension funds, specifics of investment of amounts designated for retirement benefits and inherent risks, significance of return on investment out of total revenue from short-term and long-term perspectives.
Methods Using a systems approach, economic, statistical and logic methods, comparative analysis and original sources, we studied the U.S. practices of developing regional retirement systems.
Results Having analyzed the development of regional retirement systems comprehensively, we identified key principles of their operation, development trends, specifics of retirement assets management, mix of investment portfolios, current and non-current risks.
Conclusions and Relevance Having analyzed trends in revenue and payments under retirement plans of the states and local governments, role of investment income against total revenue, the retirement systems were found to have high financial and economic capabilities, but had to face certain challenges arising from recession in particular. Trends in the asset-to-liability ratio shows a growing issue of unfunded retirement plans, which require governments of states and local authorities to increase contribution rates and subsequently improve those plans.


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