The Corporate Welfare Index

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The Corporate Welfare Index

The corporate welfare index is computed separately for each corporation. It directly depends on the country welfare index and on salaries in the corporation. If salaries are higher, the index will increase and we have seen that salary levels of 300 to 400% of the initial salaries make a difference in production and in revenue, which is higher than the additional cost of salaries.

However, at much higher salary levels this is questionable and depends on the type of corporation. At very high levels, salary increases make only a small difference in the corporate welfare index and the increased production does not pay for the difference in salaries and corporations may see their profits decline or even fall into large losses.

The country welfare index is described in this part of the documentation and is one of the most influential indexes in Simcountry.

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