Sexual Harassment?

·        What is Sexual Harassment? Sexual harassment is any unwelcome sexually defined behaviour which can range from misbehaviour of an irritating nature to the most serious forms such as sexual abuse and assault, including rape.   The Sexual Harassment of Women (Prevention, Prohibition and Redressal) Act 2013 defines sexual harassmentto include any one or more of the following unwelcome acts or behaviour (whether directly or by implication) namely:          i.            physical contact and advances        ii.            a demand or request for sexual favours       iii.            making sexually coloured remarks      iv.            showing pornography        v.            any other unwelcome physical, verbal or non-verbal conduct of sexual nature. ·        What is sexual harassment at workplace? Sexual harassment at the workplace is any unwelcome sexually defined behaviour which has the purpose or effect of unreasonably interfering with the individual’s work performance or creating an intimidating, hostile, abusive or offensive working environment. The Sexual Harassment of Women (Prevention, Prohibition and Redressal) Act 2013 states that if the following circumstances  occur or are  present in relation to, or connected with any act or behaviour of sexual harassment, it may amount to sexual harassment at the workplace:    I.            Implied or explicit promise of preferential treatment in her employment in her employment; or II.            Implied or explicit threat of detrimental treatment in her employment; or III.            Implied or explicit threat about her present or future employment status; or IV.            Interference with her work or creating an intimidating or offensive or hostile work environment for her; or V.            Humiliating treatment likely to affect her health or safety. ·        Quick checklist: Is your work environment free from sexual harassment? Most women themselves fail to recognize sexual harassment and treat it as trivial and routine. Take a look at the checklist below and fill a check mark (√) to an appropriate box. Check items Yes No 1.      You have supervisors or colleagues that you want to avoid working together 2.      You feel that somebody is constantly staring at you 3.      The number of female and male workers is not well-balanced 4.      There are times when supervisors or colleagues touch your body 5.      There are uncomfortable incidences at my workplace but I tolerate it with my patience 6.      My supervisor sometimes asks me out for dinner 7.      I stay obedient to whatever my supervisor says as I do not want to lose my job 8.      I receive some jokes and comments related to my appearance 9.      My supervisor frequently asks me about my personal life 10.  I often receive emails irrelevant to my work from a colleague/supervisor If you have many check marks under “Yes”, your work environment may not be free from sexual harassment. If you are in doubt, discuss with trusted colleagues, and do not stay silent.  ·        What should you do if you experience sexual harassment? If you experience sexual harassment, take action to stop it. Speak up at the time: Be sure to say "NO" clearly, firmly and without smiling when you experience sexual harassment as that is the best way to let the harasser know that his or her behaviour is offensive. If you are asked to go places, do things, respond to questions, or engage in situations that make you uncomfortable, say "NO" emphatically and clearly and do not worry about offending the other person or hurting his or her feelings. Objecting to the behaviour when it occurs helps if you decide to file charges later. Keep records: Keep track of what happens in a journal or diary and keep any letters or notes or other documents you receive. Keep copies of any offensive material at the workplace. Write down the dates, times (including frequency of offensive encounters), places, and an account of what happened. Write down the names of any witnesses. Every document that you use during trial must be authenticated by a witness. Keep this in mind during your depositions when the defense asks you where you obtained a document. If you are not clear about where you got the document, and who can authenticate it, you will not be able to use it during your trial. Take all letters of commendation, awards, thanks you's and anything at all that will corroborate your positive job performance. Pay special attention to documents that your superiors have provided lauding you and your work. If possible, ask your clients, staff, and peers for letters of commendation. Talk to someone you can trust: Being quiet or stoic about sexual harassment lets it continue. Talk to other co-workers, union members, family members or friends whom you can trust. You may not be the only one harassed by this person. Create a witness: Inform a trusted colleague and try to insure that s/he is an eye or ear witness to a situation where you are being sexually harassed. This will be useful later if you chose to file a formal complaint. Report sexual harassment to the appropriate person in the organization: Explore the different avenues available to you and file a formal complaint if necessary. If your organization does not have a policy, ensure that your employer formulates an anti-sexual harassment policy and carries out all the connected tasks. Get a medical check-up: If you have been raped or physically assaulted, go for a medical check-up. Obtain a medical report. This is important, should you decide to pursue a legal case. ·        Can an aggrieved file a civil suit in a case of sexual harassment in the workplace? Yes, a civil suit can be filed for damages under tort laws. The basis for filing the case would be mental anguish, physical harassment, loss of income and employment caused by the sexual harassment. ·        Under what circumstances can complaints be filed? Complaints may be filed under the following circumstances: ·        Cases involving individuals from the same organization ·        Cases that concern third party harassment, which implies harassment from an outsider. ·        Where can I file a complaint? o       Internal Complaints Committee – if you are an aggrieved woman who has a relationship of work with that specific organization o       Local Complaints Committee – if you are an employee from an establishment where the Internal Complaints Committee has not been constituted due to having less than 10 workers. In the case that the complaint is against the employer himself/herself and the individual feels that the case may be compromised, she can also lodge the complaint in the LCC  o       For instances where the LCC may not be immediately accessible, the Act instructs the District officer to designate one nodal officer in every block, taluka and tehsil in rural or tribal area and ward or municipality in the urban area, who will receive the complaint and forward it to the concerned LCC within 7 days. o       Local police station, in case provisions under the Indian Penal Code are applicabl

CSIR-Neeri Develops a E-Nose for Environmental Monitoring

CSIR-Neeri Develops a E-Nose for Environmental Monitoring: Sniffs out the Dangerous Stuff

Nagpur based National Environmental Engineering Research Institute (NEERI) of Council of Scientific and Industrial Research (CSIR) and the Centre for Development of Advanced Computing (C-DAC) of Department of Electronics and Information Technology of the Government of India have jointly developed an ‘Electronic Nose’ for environmental monitoring that can help sniff out a variety of volatile organic compounds (VOCs) and odorants at a pulp and paper mill industry with a prime objective to protect the health of thousands of workers working in this industry. This portable device measures odour concentration and odour intensity.

This has been the first attempt in India to develop such a product using odour sensors that make use of intelligent software to identify odorous molecules. It is also possible to train the software by feeding information based on observation of experts.  

The pulp and paper industry emits a variety of gases, namely, hydrogen sulphide, methyl mercaptan, dimethyl sulphide, and dimethyl disulphide all of which beyond a certain concentrations may adversely affect the environment and human health, This newly developed Electronic Nose helps in continuous monitoring of these gases, overcoming all limitations of the available analytical instruments that are not only expensive and time-consuming. The Electronic Nose can easily be operated at a pulp and paper mill industry and is currently functioning successfully at The Mysore Paper Mills Limited, Bhadravathi, Karnataka and Tamil Nadu Paper Mill.  Besides, it also establishes a correlation between sensory and analytical measurements for the sulphurous odorants generated from pulp and paper industries, tanneries and distilleries.

The Electronic Nose uses an array of sensors that function on the principle similar to that of human olfaction. The sensor array generates a pattern based on the type of aroma. The patterns obtained are trained to help interpret and distinguish amongst various odors and odorants as well as to recognize new patterns using advanced mathematical techniques, such as pattern recognition algorithms, principal component analysis, discriminant function analysis, cluster analysis, and artificial neural networks.

The researchers are currently working on the application of Electronic Nose to monitor gas emissions from any source, be it an industry or leakage of petroleum pipes going through fields or farms.  

Sensor array

Comprehensive approach for Border Area Development Programme

Comprehensive approach for Border Area Development Programme

The Department of Border Management of the Ministry of Home Affairs (MHA), has issued modified Border Area Development Programme (BDAP) guidelines in consultation with all Stakeholders viz. concerned Ministries/Departments of Government of India, State Governments implementing the BADP, Border Guarding Forces and NITI Aayog.

The modified guidelines include important modifications in the BADP guidelines as follows:

(i) Coverage of BADP has been extended to cover all the villages which are located within the 0-10 Km of the International Border, irrespective of the border block abutting on the International Border or not of 17 States which constitute the International Land Borders. However, priority will be given to those villages which are located within 0-10 Km from the International Border and within that the villages identified by the Border Guarding Forces (BGF) shall get upper-most priority.

(ii) Representatives of some more Union Ministries viz. Ministry of Rural Development; Ministry of Sports and Youth Affairs; Ministry of Health & Family Welfare; and Ministry of Human Resources, have been made Members of the Empowered Committee (EC) on BADP under the Chairmanship of Secretary, Department of Border Management, MHA, to ensure convergence with the schemes of these Ministries with BADP schemes.

(iii) The list of schemes permissible under BADP has been expanded to include schemes/ activities relating to Swatchhta Aabhiyan; Skill Development programmes; Promotion of sports activities in border areas; Promotion of Rural Tourism/ Border Tourism; Protection of heritage sites; Construction of helipads in remote and inaccessible hilly areas, which do not have road connectivity; Skill development training to farmers for the use of modern/ scientific technique in farming, Organic farming, etc.

(iv) Provision for Third Party Inspection and Quality Control Mechanism under MHA for random inspections of the BADP schemes by independent Monitors (Individual/ Agency) to be designated as National Quality Monitors has been made.

(v) It has been provided that the State Governments shall have the monitoring of the BADP schemes by the existing District Level Monitoring/ vigilance Committee where local Members of Parliament and MLAs are represented.

(vi). Special/Specific area schemes such as composite development of at least one village of sizeable population surrounded by five-six or more villages close to the border as Model Village; Swachh Bharat Abhiyan: Construction of toilets in schools, public places particularly for women; warehouses for food grains and fodder in hilly areas particularly in snow bound areas of Arunachal Pradesh, Sikkim, Uttarakhand, Himachal Pradesh and Jammu & Kashmir, E-chaupals, agrishops, mobile media vans etc. have been made.

The Border Area Development Programme (BADP) has been implemented through 17 States (viz. Arunachal Pradesh, Assam, Bihar, Gujarat, Himachal Pradesh, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttar Pradesh, Uttarakhand and West Bengal) which constitute the International Land Borders. It is implemented in 367 Border Blocks of 104 Border Districts in these 17 States.

The main objective of the BADP is to meet the special developmental needs and well being of the people living in remote and inaccessible areas situated near the international border and to saturate the border areas with the entire essential infrastructure through convergence of Central/ State/ BADP/ Local schemes and participatory approach. The funds under BADP are provided to the States as a 100% non-lapsable Special Central Assistance. The programme is supplemental in nature and the budget allocation for the financial year 2015-16 is Rs.990 crore.

The BADP was started in the year 1986-87 for balanced development of border areas of States bordering Pakistan, namely, Jammu & Kashmir, Punjab, Gujarat and Rajasthan and subsequently it was extended to all the land borders. 

India and United States Signs Inter Governmental Agreement (IGA) to Implement the Foreign Account Tax Compliance Act (FATCA)

India and United States Signs Inter Governmental Agreement (IGA) to Implement the Foreign Account Tax Compliance Act (FATCA) to Promote Transparency on Tax Matters

Mr. Shaktikanta Das, Revenue Secretary of India and Mr. Richard Verma, U.S. Ambassador to Indiasigned here today , an Inter Governmental Agreement (IGA) to implement the Foreign Account Tax Compliance Act (FATCA) to promote transparency between the two nations on tax matters. The agreement underscores growing international co-operation to end tax evasion everywhere. The text of the signed agreement will be available on the website of the Indian Income Tax Department (www.incometaxindia.gov.in)and the website of U.S. Treasury (www.treasury.gov).

The United States (U.S.) and India have a long standing and close relationship. This friendship extends to mutual assistance in tax matters and includes a desire to improve international tax compliance. The signing of IGA is a re-affirmation of the shared commitment of India and USA towards tax transparency and the fight against offshore tax evasion and avoidance. 

Revenue Secretary, Shaktikanta Das stated, “Signing the IGA with U.S. to implement FATCA today, is a very important step for the Government of India, to tackle offshore tax evasion. It reaffirms the Government of India’s commitment to fight the menace of black money. It is hoped that the exchange of information on automatic basis, regarding offshore accounts under FATCA would deter tax offenders, would enhance tax transparency and eventually bring in higher equity in to the direct tax regime which necessary for a healthy economy.”

Ambassador Verma, who signed on behalf of the United States, stated, “The signing of this agreement is an important step forward in the collaboration between the United States and India to combat tax evasion. FATCA is an important part of the U.S. Government’s effort to address that issue.”

FATCA is rapidly becoming the global standard in the effort to curtail offshore tax evasion. To date, the United States has IGAs with more than 110 jurisdictions and is engaged in related discussions with many other jurisdictions.

The United States enacted FATCA in 2010 to obtain information on accounts held by U.S. taxpayers in other countries. It requires U.S. financial institutions to withhold a portion of payments made to foreign financial institutions (FFIs) who do not agree to identify and report information on U.S. account holders.  As per the IGA, FFIs in India will be required to report tax information about U.S. account holders directly to the Indian Government which will, in turn, relay that information to the IRS.  The IRS will provide similar information about Indian account holders in the United States. This automatic exchange of information is scheduled to begin on 30^th September, 2015.

Both the signing of the IGA with U.S. as well as India’s decision to join the Multilateral Competent Authority Agreement (MCAA) on 3^rd June, 2015 are two important milestones in India’s fight against the menace of black money as it would enable the Indian tax authorities to receive financial account information of Indians from foreign countries on an automatic basis. 

Rashtriya Avishkar Abhiyan (RAA) Launched by Dr. A. P. J. Abdul Kalam

Rashtriya Avishkar Abhiyan (RAA) Launched by Dr. A. P. J. Abdul Kalam

Rashtriya Avishkar Abhiyan (RAA) Seeks to Develop Scientific Temper Among School Children

Dr. A.P.J Abdul Kalam, former President of India launched the Rashtriya Avishkar Abhiyan (RAA) today in New Delhi. While launching the Abhiyan, Dr. Abdul Kalam focused on developing the spirit of innovation and experimentation among students. He further laid stress on four qualities of uniqueness: Great Aim, Quest of Knowledge, Hard Work, and Perseverance. Emphasising the value of learning he added “we learn to live, we learn to think and we learn to learn”. He concluded his speech by stressing upon attaching highest value to Science.

Rashtriya Avishkar Abhiyan is a unique concept developed by the Ministry of Human Resource Development that aims to inculcate a spirit of inquiry, creativity and love for Science and Mathematics in school children.

Smt. Smriti Irani, Union Minister for Human Resource Development addressed the gathering through video conferencing and highlighted the fact that RAA is an initiative by Ministry of HRD to encourage students to learn sciences beyond the classrooms. It is an effort to take forward the Prime Minister’s vision of Digital India, ‘Make in India’ and ‘Teach in India’. She also emphasised the fact that more and more women should be encouraged to participate in the field of science and technologies. She talked of efforts made by INTEL for nurturing scientific temper among girl students. She also mentioned Google India’s initiative of Code to Learn Contest which will enable students to learn in the Google campus and announced that Phase II of RAA will be launched in January, 2016 for higher education under which model science labs will be established in all districts of the North Eastern States.

Under Rashtriya Avishkar Abhiyan, government schools will be mentored by Institutes like IITs/ IIMs/ IISERs and other Central Universities and reputed organisations through innovative programmes, student exchanges, demonstrations, student visits, etc to develop a natural sense of passion towards learning of Science and Maths.

The launch event also saw some exhilarating moments with a laser show on science and maths which enthralled the audience.

Two students, Ms. Jaya and Mr. Arsh winners of Initiative for Research and Innovation (IRIS) Award, 2014 & 2015, shared their innovative projects and their journey through the wondrous world of science.

A play presented by students of Dr. Bhimrao Ambedkar University, Lucknow spread the message of how science is woven in every aspect of life and is not limited to classrooms.

The audience also got to hear and interact with scientists like Dr. Tessy Thomas, Project Director AGNI IV and Smt. Nandani Harinath, Deputy Operations Director, Mars Orbiter Mission.

A Science exhibition showcasing some innovative models from school children which have been represented at various national and international forums was also organised at the venue.

The event was also attended by Dr. Harsh Vardhan, Union Minister for Science and Technology & Earth Sciences; Dr. Jitendra Singh, Minister of State (Independent Charge) Development of North-Eastern Region; Prof. Ram Shankar Katheria, Minister of State (Higher Education), Ministry of Human Resource Development; Shri Vinay Sheel Oberoi, Secretary, Higher Education and Dr. Subhash Chand Khuntia, Secretary, School Education and Literacy. Thousands of school children, senior policy makers and heads of higher education institutions and scientists were also present at event. 

From Tejas to AMCA

This fortnight, the Aeronautical Development Agency (ADA), which is responsible for the Tejas Light Combat Aircraft (LCA) project, will brief its new boss on a project that will shape the future of the Indian Air Force (IAF) — the Advanced Medium Combat Aircraft (AMCA), an indigenous “fifth-generation” (Gen-5) fighter more advanced than anything on the IAF’s inventory. After briefing Dr S Christopher, the new Defence Research & Development Organisation (DRDO) chief who is also ex-officio director-general of ADA, the AMCA proposal will be taken to Defence Minister Manohar Parrikar, who has specifically asked for a briefing. After Mr Parrikar’s green light, the DRDO will seek $4 billion (currently Rs 25,000 crore, but this would fluctuate with the rupee) to design and develop the AMCA, build and test-fly prototypes, and give the IAF a Gen-5 fighter within 15 years.

Knowledgeable insiders say the AMCA will be a single-pilot, twin-engine, medium (20-25 tonnes) fighter with a highly stealthy design. This would be invaluable in the first days of a major war for targeting enemy war-waging infrastructure — roads, railways, airfields, radars, headquarters and depots — when conventional, non-stealthy fighters would be detected by the enemy’s air defence radars and shot down by fighters, missiles and guns. In such a “dense air defence environment”, stealth fighters would be able to degrade the enemy’s air defences, opening the window for our non-stealthy fighters, like the Sukhoi-30MKI, to strike with large loads of externally mounted ordnance and fuel. Stealth is central for a Gen-5 fighter, and is achieved by shaping aircraft surfaces to scatter radar waves, using radar absorbent materials and paints, and using internal fuel tanks, sensors, antennae and weapons carriage and ordnance.

Alongside stealth, a Gen-5 fighter incorporates super-cruise (flying supersonic without an afterburner); super-manoeuvrability (with thrust vectoring engines and an unstable design); advanced avionics architecture and sensors that enhance the pilot-vehicle interface (allowing a single pilot to fly and fight the aircraft); and extended target detection and engagement ranges. In an ideal combat engagement, a Gen-5 fighter would detect an enemy fighter and fire his long-range missile well before the adversary’s radar detects the stealth aircraft.

“Ho-hum! ADA can never do this,” the import lobbyists will say — self-appointed patriots who see no irony in their advocacy of expensive foreign weaponry at the expense of Indian R&D and defence industry. Their critique of the Tejas is well worn. Arguing (fallaciously) that the DRDO has taken 33 years to deliver the Tejas, they will (incorrectly) extrapolate that the more complex AMCA will take even longer! Their persistent allegations about the Tejas’ performance shortfalls are now being exposed. As flight-testing expanded the Tejas’ flight envelope, it became evident the LCA far outperforms the MiG-21BISON, the most advanced of the fighters it was built to replace, as well as any Pakistani fighter except the latest F-16 Block 50/52. The upcoming Tejas Mark II — with a more powerful engine, upgraded avionics and better air-to-air missile — could be built cheaply, overwhelming even more sophisticated opponents with numbers. This would require Hindustan Aeronautics Ltd (HAL) to galvanise its production line, but that is a management issue, not a delay-inducing technology challenge.

With the Tejas’ performance now demonstrated, critics have shifted their fire to delays in the project, a more credible complaint. Even so, it is false to date the start of the LCA project to 1983, as is commonly done; the project really began a decade later. In 1983, the LCA was allocated Rs 560 crore for “feasibility studies and project definition”, and for creating developmental infrastructure. Only in 1993 was development funding allocated (Rs 2,188 crore, including the Rs 560 crore allocated in 1983). This was for building two “technology demonstrators”, the first of which flew in 2001. Taking 1993 as the base year, the Tejas took just eight years to fly, and will have taken 23 years for “final operational certification” (FOC) which is anticipated by March 2016. This is comparable with international timelines for fighter aircraft development, including the Rafale and the F-35 Lightning II.

Encouragingly, the AMCA will enjoy an impetus the LCA never got, now that the IAF has thrown its weight and support behind the AMCA programme. While the IAF stood aloof from the LCA, participating only as a critic, it has joined hands with ADA in formulating the AMCA’s configuration, and is deputing pilots and engineers to work alongside ADA as it designs the fighter. It is unclear what is driving this dramatic change in the IAF’s approach to indigenisation. It could be the realisation — stemming from the Rafale fiasco — that India simply cannot afford to import sizeable numbers of modern fighters. It could be the positive example of the navy, which has wisely steered the process of designing and building warships in India. Or, in an organisation that is shaped by the personality of the top man, it could just be that the current IAF chief favours indigenisation.

While the IAF will be praised if the AMCA meets its objectives, credit should really go to the unfairly vilified DRDO-HAL-ADA combine for leapfrogging three generations of technology in developing the fourth-generation Tejas fighter. In this process, the LCA project has catalysed an aerospace eco-structure, and a design experience, that will be the essential springboard to the AMCA.

A range of fighter aircraft technologies is already mastered. These include: a sophisticated “unstable configuration” for extra agility; quadruplex digital flight control system; light composite materials for the aero-structures; glass cockpit with digital instrumentation; an environment control system with an on-board oxygen generating system (OBOGS); and advanced avionics that allow the pilot to switch quickly between air-to-air and air-to-ground roles. With much of these Gen-4 technologies currently being refined for the Tejas Mark II, the AMCA team can focus on the Gen-5 challenges.

In sum, the LCA project has created Indian design expertise, design tools and test facilities. It has allowed ADA to gain expertise in the processes of flight testing and certification, and in prototype development. In designing, building and certifying the Tejas, ADA and the defence ministry have painstakingly woven together a countrywide network of technical and engineering institutions, laboratories and facilities. ADA calculates that 149 work centres in 28 cities have directly contributed to the LCA programme. These are now networked and available for the AMCA project. True, there are shortfalls, such as the fact that India has just one wind tunnel, essential for simulation studies in designing airframes and structures. Before the AMCA gets under way, ADA should holistically identify and make up such deficiencies as part of a national ecosystem for future aerospace projects.

The IAF’s future lies in its own hands. At the recent Paris Air Show, the Pakistan Air Force displayed its new Sino-Pakistani fighter, the JF-17 Thunder. Countries like Myanmar and Sri Lanka were reportedly making purchase enquiries. While significantly inferior to the Tejas in technologies and performance, the JF-17 was better in one crucial respect — it was steadfastly supported by its home air force. Perhaps the IAF could draw a lesson from that.

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What is full employment?

In an important sense, the US economy is now at full employment. The relatively tight labour market is causingwages to rise at an accelerating rate, because employers must pay more to attract and retain employees. This has important implications for policymakers — and not just at the Federal Reserve.

Consider this: average hourly earnings in May were 2.3 per cent higher than in May 2014; but, since the beginning of this year, hourly earnings are up 3.3 per cent, and in May alone rose at a 3.8 per cent rate — a clear sign of full employment. The acceleration began in 2013 as labour markets started to tighten. Average compensation per hour rose just 1.1 per cent from 2012 to 2013, but then increased at a 2.6 per cent rate from 2013 to 2014, and at 3.3 per cent in the first quarter of 2015.

These wage increases will soon show up in higher price inflation. The link between wages and prices is currently being offset by the sharp decline in the price of oil and gasoline relative to a year ago, and by the strengthening of the dollar relative to other currencies. But, as these factors’ impact on the overall price level diminishes, the inflation rate will rise more rapidly.

Accelerating wage growth implies that the economy is now at a point at which increases in demand created by easier monetary policy or expansionary fiscal policy would not achieve a sustained rise in output and employment. Instead, this demand would be channelled into higher wages and prices.

There are, of course, other definitions of full employment. Some would say that the US is not at full employment, because 8.7 million people — about 6 per cent of those who are employed — are looking for work. There are millions more who would like to work but are not actively looking, because they believe that there are no available jobs for people like themselves. And an additional 6.7 million are working part-time but would like to work more hours per week.

In many cases, these unemployed and underemployed individuals are experiencing real hardship. By that indicator, the US economy is not at full employment. But, for the Fed, it is, in the sense that excessively easy monetary policy can no longer achieve a sustained increase in employment. At the same time, other types of policies that change incentives or remove barriers can lead to increasedemployment and higher real incomes, without raising wage and price inflation.

Consider, for example, the high rate of non-employment among men aged 25 to 54, a group too old to be in school and too young to retire. More than 15 per cent of men in this age group are not employed. Among those in this age range who have less than a high school education, 35 per cent are not employed. Programmes to provide market-relevant education and training should be able to raise employment among this group.

Or consider the employment experience of men and women over age 65. This group is eligible for Social Security (pensions) and Medicare (health insurance), and the majority are retired. But experience shows that the decision to retire or to work fewer hours is influenced by the compensation that members of this group receive. And this amount partly reflects the fact that employed people who collect Social Security and Medicare are subject to the payroll tax that finances them.

The payroll tax paid by employees is 6.65 per cent (employers pay the same rate), and is in addition to the personal income tax. Moreover, because of the complex rules that govern the level of Social Security benefits, the older worker who pays this payroll tax is likely to receive no extra benefits.

For many older workers, the choice is not whether to work, but how much. We now have less than full employment in the sense that the payroll tax encourages older workers to work fewer hours than they otherwise would.

The Affordable Care Act (“Obamacare”) also reduces hours worked, in two different ways. First, for some individuals, working fewer hours reduces incomes enough to entitle them to a larger government subsidy for health insurance. Second, some employers are being incented to reduce the number of working hours for individual employees, because, above a specified number, Obamacare imposes a larger burden on them.

Or consider minimum-wage legislation, which reduces employers’ willingness to hire low-skilled workers. As the minimum wage is increased, employers’ incentive to substitute equipment or more skilled employees strengthens. This reduction in the demand for low-skilled workers could be offset by taking into account the hourly equivalent of transfer payments when calculating the minimum wage.

For example, someone who receives $8,000 a year in transfer payments (such as food stamps, housing assistance, and the Earned Income Tax Credit) might be deemed to have received the equivalent of $4 an hour toward meeting the minimum wage. That individual’s combined income would be achieved with a lower cost to the employer, increasing the individual’s ability to find employment.