...provide a literature review on wage rate determination issues globally and in Zimbabwe. This chapter provides an overview of wage determination. Determination of wage rates is reviewed bringing into attention some of the factors that contribute to determination of wages. Review of the importance of wage determination is also done. Empirical tools commonly used in assessing wage determination are finally reviewed. The third chapter will provide an outline of the methodology used in the study. A conceptual framework will be developed in order to identify possible variables for the study. Tools of analysis are also discussed in this chapter. The relevance of the hypothesis is also tested in this chapter. Chapter four analyzes the determinants of wages. Econometric techniques will be used in this chapter. Chapter five provides a conclusion and possible policy recommendations for the empirical findings of the study. A summary of results is presented first before recommendations. Chapter one Background of the study There is extensive literature that demonstrates important wage differences across workers exist. One of the principal explanations is that workers differ on levels of human capital. According to Schultz (1961), “investment in human capital accounts for most of the impressive rise in the real earnings per worker”. He goes on to suggest that workers who invest more in human capital will earn higher wages compared to their counterparts...
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... pp. 71-89 Renee Claussen Janet Page Kevin Sandmann Matt Schlemmer Micah Shornack Empowerment, Motivation, and Performance: Examining the Impact of Feedback and Incentives on Nonmanagement Employees It has been proven that the motivation level of employees can make or break an organization. This motivation level can be increased by the feeling of empowerment, and when the motivation level increases, so does organizational performance. Empowerment, a psychological concept, is greatly influenced by one’s habits, values, and surroundings. A model of psychological empowerment was developed by Gretchen Spreitzer, Professor of Management and Organizations at University of Michigan, and it is based on a survey of mid-level managers. Her model explains that by providing employees with performance feedback and rewards, the feeling of psychological empowerment will increase. In contrast to this model, Drake, Wong, & Salter (2007) conduct an experiment which uses subjects representative of lower-level employees, rather than mid-level managers. They choose to focus on lower-level employees because little research has been published that investigates the ideas of empowerment within this group (Drake, Wong, & Salter, 2007). The lower-level employees are directly involved with data processing, data entry, manufacturing processes, and customer service, or they are on the front-line of service-based firms, having to provide services to their clients (Drake et al...
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...Learning Team Deliverable: Week 2 Emily Gumataotao, Pamela Hernandez, Mark Sanschargrin, Terra Stefan ECO/561 February 10, 2014 Peter Oburu Cost Concepts – Pure Competition; Demand for Resources; Identify Production Level to Maximize Profits (Chapters 9, 12) Topics comfortable Team member Terra felt comfortable with the purely competitive concepts. She felt they came natural for her because she has been in the retail business for over 20 years. Team member Mark felt comfortable with learning the topic of the Four Basic Market Models consisting of the Pure Competition, Monopolistic Competition, Oligopoly, and Pure Monopoly structures. Team member Pamela felt comfortable with the definition of purely competitive concepts and how they relate to a certain type of industry for example agriculture. Team member Emily felt comfortable with the idea of pure competition and the fact that each market no matter how big or small is purely competitive. Topics struggled Team member Mark struggled with the two methods to determine the level of profit maximization, the Total Revenue Total Cost approach as well as the Marginal Revenue Marginal Cost approach. The MR=MC rule seemed unclear in that the more marginal revenue should overcome the costs in all ranges of production. The topic became a little clearer with the cost and revenue curve simulation. Team member Pamela struggled with the charts and few real life examples to better understand the concepts...
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...9/19/2012 A Tour of the World A Tour of The World A Tour of The World Chapter 1: A Tour of the World CHAPTER 1 Prepared by: Fernando Quijano and Yvonn Quijano Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall • Macroeconomics, 5/e • Olivier Blanchard 1-1 The United States Table 1-1 1996–2006 (average) 2006 2007 2008 3.1% 3.4% 3.3% 2.1% 2.5% Output growth rate Unemployment rate 6.2 5.0 4.6 4.6 4.8 Inflation rate The unemployment rate 4.0 2.0 2.9 2.6 2.2 Output growth rate: annual rate of growth of output (GDP). Unemployment rate: average over the year. Inflation rate: annual rate of change of the price level (GDP deflator). 3 of 18 Chapter 1: A Tour of the World The inflation rate The period 1996-2006 was one of the best decades in recent memory: The average rate of growth was 3.4% per year. The average unemployment rate was 5.0%. The average inflation rate was 2.0%. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall • Macroeconomics, 5/e • Olivier Blanchard 1-1 The United States 4 of 18 1-1 The United States Has the United States Entered a New Economy? Should We Worry About the U.S. Trade Deficit? Figure 1 - 2 Figure 1 - 3 Rate of Growth of Output per Hour in the United States Since 1960. The U.S.Trade Deficit Since 1990 The trade deficit increased from about 1% of output in 1990 to about 6% of output...
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...2. Review of literature 2.1 The incidence of sin taxes 2.2 The incidence of tax on pure rent in a small open economy 2.3 Tax incidence in bargaining 2.4 The general equilibrium incidence of environmental taxes 2.5 The tax system incidence on unemployment: A country specific analysis for the OECD economies: 2.6 Tax and subsidy incidence equivalence theories: experimental evidence from competitive markets 2.7 Tax incidence under oligopoly: a comparison of policy approaches 2.8 The incidence of income tax on wages and labour supply 2.9 The incidence of personal income taxation: evidence from the tax reform act of 1986: 2.10 Tax incidence when individuals are time-inconsistent: the case of cigarette excise tax 3. Conclusion References 1. Introduction: Government generally collect taxes to generate revenue and question arise here is that after imposition of taxation, which group will bear the tax burden. After implementation of tax, there would be the division of tax burden between byres and sellers which is known as tax incidence. Tax incidence is linked to the price elasticity of demand and supply. If supply is more elastic than demand then the tax burden falls upon the buyers and when the demand is more elastic than supply then the producers will bear the cost of the tax. Tax incidence is basically the analysis of the effect of taxation on the distribution of economic welfare. Tax incidence...
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...Week Two Student Guide This week’s topics cover cost concepts including production levels, fixed and variable costs, and the application of cost concepts in making business decisions. The chief concerns of many businesses are revenues and profits, which are often translated into cutting costs. The concept of efficiently utilizing available resources is explored as the readings review demand for resources, fixed and variable costs, and labor productivity and wages. The choice of production level or quantity is affected by the market structure in which a firm is operating. Therefore, the market structure of pure competition is introduced this week to explain how different businesses look at the revenue and cost structures. The topic of cost curves indicates the trade-offs between fixed and variable costs as well as labor and capital. Cost Concepts OBJECTIVE: Identify production level to maximize profits. Resource: Ch. 9 & 12 of Economics Content • Ch. 9: Pure Competition o Four Market Models o Pure Competition: Characteristics and Occurrence o Demand as Seen by a Purely Competitive Seller o Profit Maximization in the Short Run: Total-Revenue–Total-Cost Approach o Profit Maximization in the Short Run: Marginal-Revenue–Marginal-Cost Approach o Marginal Cost and Short-Run Supply o Profit Maximization in the Long Run o Pure Competition and Efficiency • Ch. 12: The Demand for Resources o Significance of...
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...unfair labor practice case brought before it. In making the determination, the Board's discretion is subject to various limitations. Section 9(b)(1) prohibits the certification of any unit as appropriate for collective bargaining if it is composed of both professional and nonprofessional employees unless the majority of the professional employees vote to be included in such a unit. Section 9(b) (2) states that no craft unit can be declared inappropriate for collective bargaining purposes on the grounds that a different unit has been recognized by an earlier Board determination (NLRB.gov). Furthermore, section9 (b) (3) provides that no unit can be certified as appropriate for bargaining if it includes guards and watchmen with other employees; and a unit of guards cannot be certified if this labor organization admits employees other than guards to membership or if it either directly or indirectly affiliates with any other labor organization that admits members other than guards. Section 9(c) (5)' prevents making the extent of organization the controlling factor in the determination of the appropriate unit. It has long been an accepted principle that the bargaining unit determination authority of the Board is not reviewable by the federal courts. However, in the recent case of Leedom v. Kyne, the Circuit Court of Appeals for the District of Columbia modified somewhat this practice by ruling that if the determination violated the statutory requirements and resulted in injury it...
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...100,000 Estimated harvest 10,000 kg 15,000 kg Required: a) Determine the estimated total costs upon completion and estimated profit for each batch if the selling price for the tiger prawns is RM12/kg. b) If provision for batch 1 and batch 2 is RM16,000 and RM8,000 respectively, calculate the value of the closing stock at NRV and at cost 1 QUESTION 2 Marakisa Bhd involves in the aquaculture activities. The company has built 10 ponds and each pond takes 3 months to generate revenues. Therefore allowing Marakisa to operate 4 phases annually. Detail information on the costs and revenues for the year 2006 is as follows: Types of cost Land acquisition Facilities (road and sewage) Ponds, equipment, water pump and generator Direct labour wages Supervisor’s salary Material costs Transportation costs Revenue: Phase 1 Phase 2 Phase 3 Phase 4 Amount (RM) 520,000 15,000 2,540,100 600/month 1,200/month 5,000/month 5% from revenue 575,800 620,300 490,000 680,400 sales i. ii. Additional information: Ponds and other equipment is depreciated at 10% per annum on a straight line basis. A worker is assigned to each pond and a supervisor is responsible for 5 ponds. Required: Prepare an income statement for the year 2006 for Marakisa Bhd in accordance with FRS 204. 2 QUESTION 3 Part A Aquaculture is defined in Financial Reporting standard (FRS 204) ‘Accounting for Aquaculture’ as the culture and husbandry of desirable aquatic animals, such as fish and prawns and aquatic plants...
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...Wage Methodology for the Temporary Non-Agricultural Employment H-2B Program This Rule document was issued by the Employment and Training Administration (ETA) Action Interim final rule; request for comments. Summary The Department of Homeland Security (DHS) and the Department of Labor (DOL) (jointly referred to as the Departments) are amending regulations governing certification for the employment of nonimmigrant workers in temporary or seasonal non-agricultural employment. This interim final rule revises how DOL provides the consultation that DHS has determined is necessary to adjudicate H-2B petitions by revising the methodology by which DOL calculates the prevailing wages to be paid to H-2B workers and U.S. workers recruited in connection with the application for certification; the prevailing wage is then used in petitioning DHS to employ nonimmigrant workers in H-2B status. DOL and DHS are jointly issuing this rule in response to the court's order in Comité de Apoyo a los Trabajadores Agricolas v. Solis, which vacated portions of DOL's current prevailing wage rate regulation, and to ensure that there is no question that the rule is in effect nationwide in light of other outstanding litigation. This rule also contains certain revisions to DHS's H-2B rule to clarify that DHS is the Executive Branch agency charged with making determinations regarding eligibility for H-2B classification, after consulting with DOL for its advice about matters with which DOL has expertise, particularly...
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...desires of those with purchasing power at each price (demand D). The diagram shows a positive shift in demand from D1 to D2, resulting in an increase in price (P) and quantity sold (Q) of the product. Supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers (at current price) will equal the quantity supplied by producers (at current price), resulting in an equilibrium of price and quantity. The four basic laws of supply and demand are:[1] 1. If demand increases and supply remains unchanged, then it leads to higher equilibrium price and quantity. 2. If demand decreases and supply remains unchanged, then it leads to lower equilibrium price and quantity. 3. If supply increases and demand remains unchanged, then it leads to lower equilibrium price and higher quantity. 4. If supply decreases and demand remains unchanged, then it leads to higher price and lower quantity. ------------------------------------------------- The graphical representation of supply and demand The supply-demand model is a partial equilibrium model representing the determination of the price of a particular good and the quantity of that good which is traded. Although it is normal to regard the quantity demanded and the quantity supplied as functions of the price of the good, the standard graphical representation...
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...Marin Community College in California in 1931 because prestigious four-year universities were reluctant to take a student from such a little known high school.1 He transferred to the University of California at Berkeley, where he received a degree with highest honors in 1935 in northern California. He later transferred to the University of California, Berkeley, the same University which turned down his application for enrolment and graduated with a bachelor's degree in 1935 with highest honors. It was during his studies at Berkeley, that he met his fiancé’ Dorothy Emily Webb. The two got married on 6th July 1937. Dunlop continued studies at the University where he earned his PhD in Economics in 1939, delivering the dissertation “Movements of wage-rates in the business cycle”.2 In 1937, he went to Cambridge University, England, to study under the British economist John Maynard Keynes whose ideas were so influential and revolutionary; that a school of thought was developed called Keynesian economics which serves as a sort of benchmark that defined virtually all economists who came after him. During their stay there, Dunlop and his wife shared a...
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...managers and labor representatives at the car giant (Edmondson p 52). Uwe Dolata, spokesman for the German Association of Detectives (BDK) and an expert in white-collar crime, says, “Corruption is so inherent in German business that the police have created a special division to deal with it (Deutsche Welle).” The Volkswagen scandal case is a classic illustration of what happens when there is failure of corporate governance. History of Volkswagen The word “Volkswagen” means “people’s car”. In Germany there had been many efforts to create simple cars that everyone could afford, but none had met with much success. Even if they were simple enough for the average person, the cars still ended up costing more than the average worker’s yearly wage. In 1930, Ferdinand Porsche set up an automotive design company in Stuttgart, which became known as the Porsche Buro. After much trial and error and more than a few different prototypes he finally created a prototype, which was named KDF Wagen by Hitler, who had shown much interest in these creations. The name was taken from the slogan “Kraft Durch Freude” meaning “strength through joy”. In Berlin at the car exhibition in 1938, Hitler announced that the building of the new factory for the production of the cars would commence, however only a few...
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...contributed $100 million in equity. The JV would produce the Pontiac LeMans, which was based on GM’s popular Opel Kadett model developed by GM’s wholly owned German Subsidiary Opel. Commentators hailed the alliance as a brilliant outcome of a corporate marriage of German technology and Korean labor (whose cost was low at that time). As a win-win combination, GM would tackle the small car market in North America and eventually expand into Asia, while Daewoo would gain access to superior technology. Unfortunately, the alliance was problematic. By the late 1980s, Korean workers at the JB launched a series of bitter strikes to demand better pay. Ultimately, the JV had to more than double their wages, wiping out the low cost advantage and the poor quality of the LeMans. Electrical systems and brakes often failed. Daewoo, however, argued that the poor sales were primarily due not to the quality problems but to GM’s poor marketing efforts that had not treated the LeMans as one of GM’s own models. Further, Daewoo was deeply frustrated by GM’s determination to block efforts to export the LeMans to Eastern Europe, which Daewoo saw as its ideal market. GM’s reasoning was that Eastern Europe was Opel’s territory. GM’s Expectation * Increase in imports (80,000 to 1,00,000 cars a year) Actual Outcome * Democracy in South Korea led to demand for high wages * Cheaper to build Opels in Germany * Gained reputation of Poor quality * Decreased in sales by 86% Daewoo’s...
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...of the potential in our elderly family members' latest years. In our first five years, we will establish a new kind of Elder Care model based on the idea that the elderly are fully-realized persons, with ideas, thoughts, and experiences which matter. Can you help us to realize this goal? 1.1 OBJECTIVES Financial: For our first year, we have four financial objectives: * To raise adequate funding for start-up. * To open the facility, and maintain it at 3 to 4 rooms occupied each month. * Begin development implementation for the ongoing funding needs of years two through five. Non-financial * To provide a warm, comfortable, safe and engaging home for up to 4 permanent residents. Ongoing feedback through the residents, family members of the residents and volunteers will give us a weekly update on our progress. * To provide adequate training, mentoring and compensation to our caregiving staff to create job satisfaction. 1.2 MISSION At Sandy’s Elder Care or (Assisted Living Facility), we promote the dignity and self-worth of all of our residents, and strive to give them excellent quality of life, as defined by the residents, individually and as a group. To that end, we encourage resident group decision-making through the House Councils, access to all common areas of their home here at Sandy’s, and self-determination in...
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...Microeconomics has a role in society as well as in the economy of a region. This field of study allows economists to determine not only the patterns of consumers, businesses, and other organizations that are spending money but also the factors that are affecting spending habits and production decisions. Microeconomics involves studying the concepts and ideas that establish supply and demand in a particular market and the way that consumers and businesses alike prioritize their spending. Essentially, the role of microeconomics is to determine how, when combined, small economic components are affecting the broader economy. Instead of looking at market indicators that represent a wide field of data, however, this type of study considers how individuals, households, or specific markets are responding to markets. Although this economic approach does not necessarily reveal or determine economic conditions, the process offers insight into the way that consumers and businesses alike decide the value of a particular product or service. This is expressed in the amount of resources that either the consumer or business dedicates to an item. Rather than tallying the way that consumers as a whole are responding to a particular product, for instance, microeconomics begins with the study of the extent of demand stemming from one single consumer. Once this demand has been determined, this study continues and expands to include a greater number of individuals in the assessment. Economists also...
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