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efficiency wage
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Describe two factors that affect labor supply and two factors that affect labor demand?
The determinants of labor demand depend on which model is being observed or utilized. One model is the efficiency wage model is based off the gift exchange theory, and the cost of job loss theory of employment. Gift exchange theory is the idea of the employee productivity is related to the compensation of the job (with diminishing returns). Cost of job loss states that there are significant costs to the employee for losing their job and is motivated by the fear of losing the job. Both theories produce an equilibrium that is above the market wage because its goal is to maximize labor productivity, where the quantity per wage ratio is maximized, rather than to minimize production costs. In the competitive model of the labor market, the firm has a downwardly sloping demand curve where there is a negative relationship between employment and wage; employment decreases as wage increases and vice versa. Also in this model the supply curve for labor is perfectly elastic. This is because in a competitive market the firm is a wage taken and has no control over the wage of the employees. Neither supplier nor demander of labor has any bargaining power to raise or lower wages, thus there is one wage and both parties will be able to participate in the labor market as much as they choose. The determinants of labor supply also depend on which model is being observed or utilized. One way of looking at labor supply is the neoclassical model. This model looks at the indifference curve of an individual in terms of labor versus leisure. It looks at the extensive and intensive margins of labor supply. The extensive margin of labor supply is the decision to go into the labor market, and the intensive margin of labor is the decision of how many hours to work in the labor market. The main concept behind the extensive margin is the reservation wage, which is the lowest wage an individual will work for one hour. The main concept behind the intensive margin is the individual preferences regarding leisure and work. This framework implies that each person will have different labor supply behavior. Another determinant of labor supply looks at the role of institutions and culture to influence how much an individual will work. Evidence for this model is more to do with the implementation of social programs and changing social structures than a predictive model. It looks at increased gender equality to look at the increase in labor participation by women. It also looks at the implementation of child daycare programs that also look at the increase in women labor participation.
What is efficiency effectiveness?
Efficiency effectiveness can only be measured by results; cost efficiency, time efficiency, output efficiency, etc.
The real wage will rise if the nominal wage?
The real wage is the amount of money paid when adjusted for inflation. This wage will rise if the nominal wage rises.
Why is equilibrium wage high for some workers and low for others?
Critics would argue the sticky wage theory. Arguing that some employers are in a time period when they can't change wages to a hirer place therefore what may appear to be the labor market equilibrium really isn't. [ Other employers are able to move to the higher place and therefore make higher profits. Another theory is known as the bonding theory. If one place were hiring a limited number of workers at a higher price workers would want to buy that job. Something like indentured servitude, or in modern times possible delayed wages. As we discussed earlier when a job pays for workers education the worker is the one that pays in the form of lower pay. When the education is increased the pay is increased. This would suggest at the present time all wages are equal. The bonding critique, therefore, suggests that efficiency wages models would self-destruct in the long run. Unfortunately the evidence to support the bonding critique or efficiency wages is not conclusive. Others critics argue that efficiency wages causes more unemployment, because of the high wage. The result of this higher-than-equilibrium wage is a lower rate of job finding and greater unemployment. As you can see from the supply and demand diagram the efficiency wage causes a surplus of workers.
What is relative wage?
Relative wage is the wage that is comparable for a certain type of job. It will not necessarily tell you wage rate but the range that you should look for that type of job.
What is efficiency wage model?
efficiency wage
Efficiency wage model firms tend to pay workers?
no.
How did ford increase efficiency?
he used a conveyor belt for the model t cars
What has the author Andrew Weiss written?
Andrew Weiss has written: 'Beginning mindfulness' -- subject(s): Meditation 'Efficiency Wage Models of Unemployment (Fundamentals of Pure and Applied Economics)' 'Efficiency wages' -- subject(s): Incentives in industry, Unemployment, Wages
What is the tonnage of the Tempstar High Efficiency 5000 air conditioner Model Number CA5560VKD1?
5
Which of these is most important to consider when choosing a high-efficiency model for a heating and cooling system?
size
What does a credit balance in a direct labor efficiency variance account indicate?
The average wage rate paid to direct labour employees was less than the standard rate.
What is the tonnage of the tempstar high efficiency 5000 air conditioner model number nca5536uka1?
3 ton
What is the wage for a model?
Modeling can be a lucrative career. The average print model makes between $15,000-$30,000 per year. Top models earn millions of dollars.
What is the tonnage for a tempstar high efficiency 5000 air conditioner model number CA5548UKA1?
4 Ton unit
What has the author Harrington Emerson written?
Harrington Emerson has written: 'A comparative study of wage and bonus systems' -- subject(s): Bonus system, Industrial efficiency, Wages 'The Pacific cables' -- subject(s): Submarine Cables 'The twelve principles of efficiency' -- subject(s): Industrial efficiency 'The twelve principles of efficiency' -- subject(s): Accessible book, Industrial efficiency, Industrial engineering, Industrial management 'Cost and efficiency records' -- subject(s): Cost accounting 'The railroad situation' -- subject(s): Railroads, Finance 'In memoriam to those who perished in the disaster to the Titanic April 14th and 15th, 1912' -- subject(s): Titanic (Steamship) 'The twelve principles of efficiency' -- subject(s): Industrial efficiency
What has the author Andreas P Georgiadis written?
Andreas P. Georgiadis has written: 'Efficiency wages and the economic effects of the minimum wage' 'Change and continuity among minority communities in Britain'
