Question 1: What circumstances are like to make the use of pay-for-performance appropriate or inappropriate? Use examples if necessary. Question 2: Why might some workers be more prone to labor market mismatch than others? Does such mismatch necessarily indicate market failure? Question 3: Why might the preferred response of an employer faced with a shortage of labor not be to increase wages, but instead to use non-price adjustments?

Question 1: What circumstances are like to make the use of pay-for-performance appropriate or inappropriate? Use examples if necessary. Question 2: Why might some workers be more prone to labor market mismatch than others? Does such mismatch necessarily indicate market failure? Question 3: Why might the preferred response of an employer faced with a shortage of labor not be to increase wages, but instead to use non-price adjustments?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter1: Introduction: What This Book Is About

Section: Chapter Questions

Problem 2MC

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Discuss how economic forces influence decisions about pay. Do U.S. companies pay their chief executive officers too much? Why or why not? What steps should be taken to ensure pay equity? Lastly, rather than focusing on past performance in a yearly review, should employee performance evaluation systems incorporate continuous feedback?
Which of the following regarding family-friendly workplace practice is correct? Multiple Choice None of the answer choices are correct. Empirical research finds little evidence to support the use of the theory of compensating wage differentials to explain family-friendly workplace practice. Conditions such as the availability of parental leave, flexible working hours, job sharing, and taking time off work and making it up later are all part of the family- friendly workplace programs advocated by the government. One cannot use the theory of compensating wage differentials to explain family- friendly workplace practice, since people are not willing to accept lower wages in return to family-friendly work environment. One cannot use the theory of compensating wage differentials to explain family- friendly workplace practice since it is not viewed as a job characteristic.
Gerhart & Newman (2020) discuss how compensation (pay) may be a measure of justice, i.e., gender, race, culture, etc. They further state that stockholders are interested in executive pay. Why does it matter, and how is it fixed? How risky are these decisions to employee retention?
Imagine a scenario where a worker receives a wage far above the market determined rate for their employment. Using the concept of cognitive dissonance, would this worker be predicted to respond with more or less effort on the job? Explain.
Question 24 Consider a perfectly competitive labor market where firms compete over wages and risk of injury. There are two types of workers with different risk preferences: Worker A's utility is UA = w - √ • Worker B's utility is UB = w - √ O There are firms that can offer any level of risk between 0 and 50. Firms offer wages according to: w=12+0.5r If X 6.5, what is the compensating wage differential between Worker B's equilibrium wage and Worker A's equilibrium wage? (I.e. find 0AB = ww*) Round your answer to the nearest hundredth.
A studied difference in women's and men's labor market outcomes is their different distributions in industries and occupations. a) What indicator is used to measure gender occupational segregation? Explain the components and meaning of this indicator. b) What are the typical supply-side explanations for gender differences in occupations and earnings? c) Define societal discrimination and labor market discrimination. d) Give an example of a case when voluntary choices, societal discrimination, and labor market discrimination mix.
Offering higher than equilibrium wages can be expected to a)increase the cost of losing a job. b) prompt some workers to put up with some strict rules and to be obedient to management. c)inspire effort fromthose who can't be monitored directly on a daily basis d) reduce training cost and increase efficiency. over time. e) all of the above.
Otherthingsbeingconstant,howwillthefollowinginfluence the hourly earnings of employees? Explain your answer. The employee must work the midnight to 8:00 a.m. shift. The job involves split shifts (work three hours, off two hours, work three additional hours, and so on). Theemployerprovideslow-costchildcareservicesonthe premises. The job is widely viewed as prestigious. The job requires employees to move often from city to city. The job requires substantial amounts of out-of-town travel.
Currently, it is imperative for Depok Municipality employers of more than 50 workers to offer paid family leave for workers with newborn children. Under this new regulation, companies or industries with more than 50 workers are obligate to keep a job for a worker who goes on paid leave for up to eight weeks (approx. two months). When on leave, workers receive 55 percent of their regular pay. What are the likely responses on the demand (employer) side of the labor market? Include in your analysis a consideration of factors that would affect the size of these responses
You have two choices in jobs. Job A means you earn $70,000 a year, in an area where the average income is $80,000. Job B means you earn $60,000 a year in an area where the average income is $50,000. Assume all other factors such as housing quality, schooling, etc are the same. A "rational profit maximizer" would: Have an indeterminate choice. Be indifferent between the two wages. Always choose the lower wage. Always choose the higher wage.
Many employers in the U.S. pay significant amounts towards their employees' health insurance premiums. If the benefit-cost per full-time employee rises (e.g. when the insurer raises premiums) and the employer does not want the total cost of the employees' compensation (wage + benefits) to rise, all of the following would represent valid options for the employer to consider, except a. replacing some full-time employees with part-time workers. b. prohibiting fulltime employees to work overtime and hire temporary part-time workers to work those extra hours instead (assuming overtime is paid at the same wage rate as regular work hours). c. increasing full-time employee's contribution towards premiums; not changing wages. d.laying off some of the full-time employees and instituting mandatory overtime for the remaining full-time employees (assuming overtime is paid at the same wage rate as regular work hours).
S n abus tions Dashboard or Education The figures given below show the demand (D)and supply (S) curves of labor in two different markets. Figure 16.3 Wage Rate 18 12 Market A S Q₁ Quantity (Hours) Wage Rate 27 D 18 12 #tv Market B Q₁ D Which of the following is a reason for the wage differential shown in Figure 16.3? Quantity (Hours) O Market A represents the market for a risky occupation. O Working conditions offered by the firms in Market B are uncongenial. O The workers in Market B are unionized whereas the workers in Market A are not. O Market B hires a larger number of skilled workers than Market A. O The workers in Market B are more productive than the workers in Market A. AQ Daydreamer Aa