72 SOCIAL SCIENTIST eye-brows against the public sector organisation, which, accoiding to them, are high wage islands in the economy and ask : can our economy afford to pay such high monthly salaries, especially when the reserve army of unemployed would be prepared to work at lower wages ? (p. 135). Taking the economy as a whole also, wages do not seem to have moved faster than the payments to other factors. If we look into the national income accounts, it can be seen that wages and other compensations to the employees as a ratio of net domestic product at factor cost was 41.8 per cent in 1978-80, whereas it has reduced to 41.5 per cent in 1983-856. It is true that, just as many other distortions, there are distortions in wage structure too in the economy. If these distortions are due to dearness allowance payments, these are also partly due to non-payment of dearness allowance to a very large section of the employees. In a subject of study that is intended to bring out these distortions, the readers would expect certain policy suggestions as to how these distortions could be removed. The suggestions which the authors have for removing the wage distortions in India are : (i) dearness allowance should not be given to the workers and salary earners as and when there is a price rise and for all components of price rise; and (ii) the payment of dearness allowance should be based on a flat rate system rather than on a system of percentages to basic wages. We have already mentioned earlier about the former. As regards the latter, i.e., a flat rate system of dearness allowance, it is in existence in the public sector enterprises. Still the authors have themselves found sharp distortions in the wage structure of these enterprises. Moreover, it is not known how the wage distortions could be corrected by switching over from percentage to flat rate system of dearness allowance and by non-payment of dearness allowance to some of the increases in costs of living, when there are many other factors responsible for wage distortions in the economy. The book leaves unanswered not only this but every pertinent question that one may raise on wage policy. 1. Andre Gunder Frank, "Economic Genocide in Chile : Open Letter to Milton Friedman and Arnold Harberger". Economic and Political Weekly, June 12, 1976 ; pp. 880-888. 2. Reserve Bank of India, ^Report of the Currency and Finance 1985-86^, (Vol. II: Statistical Statement, p 110). 3. Croxton, Cowden and Klein, "Applied General Statistics". Prentice Hall of India, New Delhi, 1969 ; Chapter 9. 4. Labour Bureau, "Consumer Price Index : An Anatomy". Shimla, 1974. 5. Government oflndid, ^Economic Survey 1^86-87", p. S-39. 6. Central Statistical Organisation, "National Accounts Statistics 1970-71—1984^ 8y\ (Statement I ; pp. 2-3),