The Wage Subsidy Index in the Merchant Marine Act of 1970

The Wage Subsidy Index in the Merchant Marine Act of 1970

Subsidies for US merchant fleets were formerly on a cost-plus basis, giving no incentive to economise on labour costs. The 1970 Act restricts the subsidy by reference to an index of wages paid in other industries. This has many advantages, but Dr Franco thinks it may be disadvantageous to seamen.

Share Content

Facebook
Twitter
LinkedIn

Related Articles

Economies of Scale in Bus transport: I. Some British Municipal Results

This study was prompted by the proposal to merge a number of municipal transport undertakings into Passenger transport Authorities. The authors analyse figures showing various working expenses per bus-mile, and find no evidence of scale economies. They point out, however, that the P.T.A.s will be larger than any undertaking in their sample, and that a different conclusion might conceivably be reached if data were available on costs per passenger-mile. Extension of one-man operation appears to offer greater scope for economies than amalgamation.

View Journal »