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Analysis of a Major Inequity in the Budgetary Wage System: Gerontocracy. Arguments and Solutions

In: Rethinking Social Action. Core Values in Practice

Author

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  • Viorel ROTILÄ‚

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

  • Lidia CELMARE

    (Researcher, MPhil, „Solidarity†Research and Social Development Center, Galati, Romania)

Abstract

In this article, we demonstrate that the influence of seniority on employees’ gross salaries in the budgetary sector is exaggerated, leading to significant effects which allow us to legitimately discuss the gerontocracy it reveals, in other words, the wage discrimination based on age criteria. The wage system currently applied for the budgetary employees’ wages is characterized by a hierarchical classification based on a dominant criterion, namely the age, which is equivalent to the “seniority in work†indicator (transposed into the six salary grades). Seniority is an exclusive criterion for defining payment hierarchy in the case of identical categories of staff. For each occupational category, the basic salary is hierarchically classified based on seniority and according to the 6 grades; also, based on it all categories of bonuses are established. Thus, the differences in the basic salary are multiplied by each of the applicable bonuses. The maximum level of polarization based on seniority is the when bonuses for working conditions depend on the basic salary which is hierarchically classified according to the accumulated length of service. The result is that different “compensations†for identical working conditions in identical occupational categories are offered. Different compensation for members of the same professional category working under exactly the same conditions flagrantly violates the principles of equity and the provisions of Art. 3, section c) of Law no. 284/2010. We consider that the best solution would be that bonuses should be related to the basic salary, which would correspond to the 0 grade for each of the professional categories. Considering the set of effects caused by wage discrimination based on age and taking into account the reason why they were introduced, we used the term “gerontocracy†. Gerontocracy could be one of the risks inherent to democratic societies and created by modernity, which has not been sufficiently studied so far and which is enhanced by the contribution of age-based knowledge (recognition) in a society where science occupies an increasingly important place.

Suggested Citation

  • Viorel ROTILÄ‚ & Lidia CELMARE, 2017. "Analysis of a Major Inequity in the Budgetary Wage System: Gerontocracy. Arguments and Solutions," Book chapters-LUMEN Proceedings, in: Camelia IGNATESCU & Antonio SANDU & Tomita CIULEI (ed.), Rethinking Social Action. Core Values in Practice, edition 1, volume 1, chapter 66, pages 730-739, Editura Lumen.
    • Handle: RePEc:lum:prchap:01-66
    DOI: https://doi.org/10.18662/lumproc.rsacvp2017.66
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    References listed on IDEAS

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    1. John Moffat & Duncan Roth, 2016. "The Cohort Size-Wage Relationship in Europe," LABOUR, CEIS, vol. 30(4), pages 415-432, December.
    2. Fertig, Michael & Schmidt, Christoph M., 2003. "Gerontocracy in Motion? - European Cross-Country Evidence on the Labor Market Consequences of Population Ageing," RWI Discussion Papers 8, RWI - Leibniz-Institut für Wirtschaftsforschung.
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    Cited by:

    1. Viorel ROTILA, 2018. "The Predictions on the Future of Labour are not Grounded; Some Arguments for a Bayesian Approach," Postmodern Openings, Editura Lumen, Department of Economics, vol. 9(3), pages 36-63, September.

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    More about this item

    Keywords

    Gerontocracy; discrimination; wage system; budgetary employees; payment hierarchy;
    All these 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

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