https://www.um.edu.mt/library/oar/handle/123456789/7686 Wed, 08 Jul 2026 02:50:40 GMT 2026-07-08T02:50:40Z https://www.um.edu.mt/library/oar/handle/123456789/7582 Title: The impact of the national minimum wage on employment in Malta Abstract: This dissertation analysis the relationship between the effect of changes in the national minimum-wage on labour demand, measured by the aggregate hired employment, using data pertaining to Malta. This relationship is estimated by the Least Squares method of regression utilising a labour demand equation, which expresses aggregate hired employment as a function of the average wage rate, GDP, and other variables. The data utilised relates to 1956- 2011. The findings of the labour demand model indicate that employment is influenced by changes in GDP and by wage rates, as expected. A partial adjustment scheme was introduced to distinguish between short-run and long-run effects. The labour demand model was also specified in disequilibrium form to allow for the possibility that labour demand is not observed when there is excess demand for labour. The study also finds that there is a positive relationship between the average wage rate and the minimum-wage rate, with a lag on one year. This implies that employment is negatively related to the minimum-wage, via the latter's effect on the average wage rate. The study concludes that, as expected, the elasticity of wage rates with respect to labour demand is higher in the long-run than in the short-run. The estimated elasticities of the minimum-wage rate on hired employment are 0.2 in the short run and 0.3 in the vi long run, implying that a 1% increase in the minimum-wage is likely to reduce hired employment by 0.2% or 0.3% in the following year, everything else remaining constant. It should be kept in mind however, that in any one year the effect of the increase in GDP more-than compensates for this negative impact of the minimum-wage rate. Description: B.COM.(HONS)ECONOMICS Tue, 01 Jan 2013 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/7582 2013-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/7577 Title: Does Okun's law hold? : a comparative study between Malta and other selected EU countries Abstract: This dissertation aims to investigate whether the unemployment-output relationship underlined by Okun's Law holds for Malta and other selected EU countries. By estimating different specifications of Okun's Law over the period between 2000 and 2012, this study specifically focuses on analysing any movements that the relationship might have been subject to in the aftermaths of the 2008 financial crisis and the ongoing European sovereign debt crisis. The main conclusion of this study is that while Okun's law is statistically valid for all countries within this study; its magnitude has varied across countries and over time. This latter variation is attributed to both movements over the stages of the business cycle and developments in country-specific labour market features. Specifically, in the case of Malta, evidence founded shows that the responsiveness of unemployment to output has increased significantly in recent years and, in particular, appears to be stronger during recessionary periods. Description: B.COM.(HONS)ECONOMICS Tue, 01 Jan 2013 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/7577 2013-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/7575 Title: Current trends in taxation and implications on economic growth : specific reference to the Maltese economy Abstract: This dissertation sets out two hypotheses in respect of Taxation and Economic Growth for the Maltese economy over the past decade, namely between 2000 and 2012, being: (i) What have been the taxation trends in Malta (in terms of tax structures, tax shifts, and tax reforms), and whether these are consistent with trends in the European Union (EU) and with taxation most likely to be conducive to growth; and (ii) What are the implications of such trends upon Malta's economic growth, estimated through a growth regression for the Maltese economy, with the aim of establishing a 'tax and growth' ranking describing the degree of distortion of various tax instruments upon economic growth. It transpires that overall, developments in taxation relative to the Maltese economy have on one part contrasted and on the other hand mirrored EU trends. Yet, whilst the tax structure, tax shifts, and tax reforms in Malta are somewhat in contrast to EU patterns, such components reflect pro-growth characteristics, except for the developments in tax shifts. As for the 'tax and growth' ranking for the Maltese economy, Social Security Contributions (SSC) rank as the least distortive tax instrument, followed by consumption, production and import taxes, and at the bottom of the rank income taxes and capital taxes as the most distortive in terms of economic growth. Hence, it seems that levying SSC and indirect taxes leads to better growth performance for the Maltese economy, compared to direct taxes. As such, implications on policy within the local scenario could revolve around increasing SSC, consumption, production and import taxes whilst minimising taxes on capital and income. Description: B.COM.(HONS)ECONOMICS Tue, 01 Jan 2013 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/7575 2013-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/7574 Title: Government intervention in the creative economy : a focus on the performing arts Abstract: This study sets out to assess the justification or otherwise of government intervention in the creative economy, particularly the performing arts market, and to rank the different policies and measures available for government intervention. The study employs a Multi-Criteria Analysis whereby each policy is given a score according to a particular criterion and the sum of all scores is used to rank the options at hand. Sensitivity analysis is conducted to gauge the difference in policies according to criteria and their weights. The study finds that the highest ranking policies are VAT exemption on Training and other tax initiatives, along with Malta Arts Fund and Malta Arts Scholarships. The study concludes by presenting a combination of policies so that the shortcomings of one policy are balanced with the benefits of another. Fiscal and educational interventions can work in tandem for the Performing Arts to prosper. Description: B.COM.(HONS)ECONOMICS Tue, 01 Jan 2013 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/7574 2013-01-01T00:00:00Z