Sunday, June 23, 2013

Unreasonable to Compare INDIA and South-Africa...


Article;
Stiff Wage-Laws Hold INDIA from Tackling High Unemployment And Low Manufacturing Base

Comment;
If there is unemployment in the economy wages should fall to achieve full- employment but if the economy is close to full employment wages will rise because the market then will compete for labor. Comparing INDIA where unemployment is 2.2% and South Africa where unemployment is 25% is not reasonable because in South Africa the pressure on wages is to go down to absorb all the labor but in INDIA the pressure on wages is to go up because of full-employment...

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