...Wage determination Model: Influence Labor supply on Wages In mainstream economic theories, the supply of labor is the total hours (adjusted for intensity of effort) that workers wish to work at a given real wage rate. More hours worked earn higher incomes but necessitate a cut in the amount of leisure that workers enjoy. Consequently there are two effects on the amount of desired labor supplied due to a change in the real wage rate. As, for example, the real wage rate rises the opportunity cost of leisure increases. This tends to cause workers to supply more labor (the "substitution effect"). However, as the real wage rate rises, workers earn a higher income for a given number of hours. If leisure is a normal good - the demand for it increases as income increases - this increase in income will tend to cause workers to supply less labor (the "income effect"). If the "substitution effect" is stronger than the "income effect" then the labor supply curve will be upward sloping and vice versa. [pic] The Labour Supply curve • If the substitution effect is greater than the income effect, the labour supply curve (diagram to the left) will slope upwards to the right, as it does at point E for example. This individual will continue to increase his supply of labour services as the wage rate increases up to point F where he is working HF hours (each period of time). Beyond this point he will start to reduce the amount of labour hours he supplies (for example...
Words: 335 - Pages: 2
...The Hampshire Company has provided the needed information to compute Traditional Costing and Activity Based Costing (ABC). Based on the information provided, The Hampshire Company should use Activity Based Costing. Activity Based Costing improves a costing system by identifying individual activities as fundamental cost objects. “The development of an ABC costing methodology could typically be analyzed with focus on the following phases: 1. The determination of the significant operational activities. 2. The identification and collection of costs specific to each of these activities. 3. The identification of the cost drivers for each of these activities. 4. The determination of the activity unit costs. 5. The allocation of the costs to the cost objects based on the activity consumption (Buys, Pieter, Green, Kevin)”. It should be understood that an ABC system is not intended to replace the general ledger, but to be viewed as a tool to translate the general ledger. The Activity Based Costing system will identify activities (things the company does) of the value chain, calculate the individual costs of activities, and assign costs to cost objects. The activity-based technique will reach its full potential when it has expanded from Activity Based Costing to Activity Based Management. When looking to adopt the Activity Based Costing system, The Hampshire Company will need identify the activities the company performs. Identifying activities can be difficult and they will...
Words: 401 - Pages: 2
...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...
Words: 2273 - Pages: 10
...Modern society owes much of its origin to a great upheaval in the 18th century, the French Revolution. It was one aspect of a broader pattern of change that, since the Renaissance and Reformation, has set the West on a different path of development from that of the rest of the world. This pattern included the individualism and, in the end, the secularism, that was the Protestant legacy. It also included the rise of science, as a method and as a practice. This culminated in explosive events toward the end of the 18th century. The French Revolution ‘was a phenomenon as awful and irreversible as the first nuclear explosion, and all history has been permanently changed by it.’ The French Revolution is largely regarded as an important event in modern international history because of the way it has had international impact and continued to have international repercussions and influences on society and thought today. This essay will look at different aspects of the French Revolution and discuss how the different components of the revolution have affected the world and the impact of these at the time of the event. For the purposes of this essay the French Revolution will be defined as the insurrection in France that began in 1789 and ended in 1815 with the defeat of Napoleon at the Battle of Waterloo. The actual dates of the revolution are widely contested but for the purposes of this essay, these dates will be used as a framework. Modern international will be assumed to mean the...
Words: 1808 - Pages: 8
...Introduction A works council is an organization which represents the employees and employers of an enterprise to talk over the working affairs and common interests. It can negotiate with the management level about the un-satisfaction and complain of the workers’ wages and their work. Works councils in different countries have different names. The most famous works council is in Germany. There is a complete system in German works councils. The member in works council is changed every four years by the common workers in the companies. EWCs were established on 22 September 1994. It is the most important event in the global industrial relations in recent years. It aims to inform and consult employees in companies at European Union level. The reason for the establishment of EWCs is partly that the transnational restructuring was brought about by the Single European Act (Markus Hertwig&Ludger Pries&Luitpold Rampeltshammer, 2011). It can communicate with the senior management of the big transnational corporation. Same information about the translational policies and measures are also told to the workers in different countries. European Works Council also provides opportunities for the representatives to discuss and develop a common response to the transnational plans. Purpose and implementation The purpose of EWCs is to promote the participation of the employees of European level in the information-sharing and consultation in multinational companies. Through the representatives...
Words: 484 - Pages: 2
...Introduction Employee voice is an umbrella term used to capture the many forms of practice that give employees a view at work. These processes and structures enable, and at times empower, employees directly and indirectly to contribute to decision making in the business. This report will look into two forms of employee voice; employee representative participation and direct employee involvement, it will look at a specific practice of each form of employee voice and analyse the strengths and weaknesses on their value to the employee. Representative Participation In 1996 a European Works Council was made a mandatory feature of any organisation with over 1000 employees that operate in over 2 EU states (EUGOV, 1996). In the UK (from the 6th April 2008) any business with a workforce of 50 persons or greater must establish a works council on demand. As a result the presence of a works council today is a very common method of representative participation. The term "works council" applies to any body that represents the interests of employees, which an employer must inform and consult with on issues affecting their organisation. Providing a works council initiates formal employee representation at workplace level to facilitate consultation and discussion of enterprise related issues between workers and management, but to what extent is a works council of value to the employee? Strengths of Works Council for employees One of the more significant strengths of a works...
Words: 1255 - Pages: 6
...In 1825, a group of American businesspeople announced the formation of a canal building company, with interests in constructing a canal system across the Isthmus. This project was to take place in an area now called Panama. The endeavor was filled with controversy. Though the canal itself was not built until the early 1900's every step toward the building and ownership, was saturated with difficulty. Walter LaFeber illustrates the dilemmas in a historical analysis. In his work he states five questions that address the significance of the Panama Canal to United States. This paper will discuss the historical perspective of the book's author, address pertinent three questions and give a critique of LaFeber's work, The Panama Canal. For proper historical analysis one must understand the importance of the Canal. The Panama Canal and the Canal Zone (the immediate area surrounding the Canal) are important areas used for trade. Even before the canal was built there were to large ports on both sides of the Isthmus. Large amounts of cargo passed through the Isthmus by a railroad that connected the two ports. The most important cargo was the gold mined in California before the transcontinental railroad was completed in the United States. It has strategic significance because of its location, acting as a gateway connecting the Pacific and Atlantic oceans. This allows for rapid naval deployment between fleets in either ocean. These two facets make the Panama Canal very important in the region...
Words: 1010 - Pages: 5
...chose not to focus on the subsequent peace process that followed after the war and its impact on the main powers like European powers but rather he focused on the impact of the peace process on the side states like Korea and china. These countries didn’t play a major or rather significant role in the peace process in fact they were largely ignored. Central to his thesis is the Wilsonian message of national self-determination and equality among states. To be well conversant with the encumbrance and openings implanted in China's the excellent place to start is on Jonathan D. Spence's good new book. ''The Search for Modern China,'' a detailed account across centuries from the fall of the Ming dynasty in 1600 up to the point of death of the democracy movement in June 1989, will educate everybody students and public alike of Chinese history. The effect and similar causal sequence of Wilson's discourse from 1918 up to the end of Paris peace conference is what Manela defines as the "Wilsonian Moment. As per Manela, Wilson radical ideals was based on his need and determination for all the nations of the earth to become self-governed and to embrace colonial ideologies. Wilson was directing his message to Europe audience but the broadcasting media in Europe send the message across the globe and it was welcomed by leaders from non-western developing countries. The nationalistic movement emerge especially within eastern countries following up on Wilson’s vision. Manila in his book highlights...
Words: 1579 - Pages: 7
...Organizational Loyalty: ABS-CBN DECSCI2 K34 MINI RESEARCH PAPER Dr. Dimaano Gino Tang Joshua Moya Ynna San Juan John Anthony Castelar Acknowledgement The authors would like to thank Dr. Dimaano for providing us the template for this paper and the questionnaires as well; De La Salle University for the facilities for our research and ABS-CBN for providing us with participants. Executive Summary When preparing to write an executive summary, ask yourself the following questions: • Who will read your executive summary? Sometimes your executive summary may have an “intended” audience: your professor might require you to write it for a CEO, department head, or supervisor, for example. On other assignments, your audience won’t have a specific identity, but always keep in mind that the reader of an executive summary needs to know all of the important information in the main document without reading the actual document. Even if you know that your instructor will be reading everything that you submit, write the executive summary as a “stand alone” document. • What is the main document’s main topic, theme, or idea? Most reports have a “thesis” or central point that they are seeking to communicate. Try to sum this up in two or three sentences. If you are having trouble with this, imagine that someone has asked you, “what’s this report about?” and that you have to explain...
Words: 3102 - Pages: 13
...Advantages and Disadvantages of Transnational Corporations Host Country: Advantages 1. The investment level, employment level, and income level of the host country increases due to the operation of TNC's. 2. The industries of host country get latest technology from foreign countries through TNC's. 3. The host country's business also gets management expertise from TNC's. 4. The domestic traders and market intermediaries of the host country gets increased business from the operation of TNC's. 5. TNC's break protectionism, curb local monopolies, create competition among domestic companies and thus enhance their competitiveness. 6. Domestic industries can make use of R and D outcomes of TNC's. 7. The host country can reduce imports and increase exports due to goods produced by TNC's in the host country. This helps to improve balance of payment. 8. Level of industrial and economic development increases due to the growth of TNC's in the host country. Disadvantages 1. TNC's may transfer technology which has become outdated in the home country. 2. As TNC's do not operate within the national autonomy, they may pose a threat to the economic and political sovereignty of host countries. 3. TNC's may damage the domestic industry by monpolising the host country's market. 4. In order to make profit, TNC's may use natural resources of the home country indiscriminately and cause depletion of the resources. 5. A large sums of money flows to foreign countries in terms of payments...
Words: 316 - Pages: 2
...CHAPTER ONE INTRODUCTION 1.1. Introduction Have you ever stopped to think about where your electricity comes from? Nowadays, it is no longer only a question of ‘how much electricity do I want to use? However, this type of question which is ‘what kind of electricity do I want to use?’ is also count. In the case of Malaysia, most of the electricity is generated by burning coal and gas in power stations. These types of activities eventually will give such a negative impact towards the environment such as the critical global warming and climate change. Hence, a green ‘power’ or electricity that is environmentally friendly is needed in order to prevent the Earth from continually dying. So what is green electricity? As stated by Green Electricity Marketplace website, ‘green electricity’' is well defined as electricity that is produced from sources which is eco-friendly and do not cause any negative impacts towards the environment. It is undeniable that every type of electricity generation will have some impact upon the environment, but some sources are much environmentally friendly than others. The greenest energy sources are those which utilise the natural energy flows of the Earth and they are usually known as renewable energy sources as they will never run out. There are various studies were conducted to examined or analysed the green electricity. These kinds of studies, however, almost invariably focus on the conservative variables such as sources, cost and impact...
Words: 8661 - Pages: 35
...Autonomy : Theory and Practice Keywords : Territorial Autonomy, Non-Territorial Autonomy, The Basque Autonomous Community, Spain, Right to self – determination. It might be considered that autonomy can be easily defined since there are so many autonomy models in different parts of the world. However, autonomy does not have the same functioning system in all these parts. Some of them show the same characteristics whereas the others have differences. For instance, autonomy can be for both religious-ethnic groups and indigenous people in different geographical areas. In such group-based autonomies, group members have the right to rule certain matters, e.g. cultural or family issues, whereas autonomy for indigenous people possesses local administrative authorities, locally elected legislative assembly and local independent courts ( Hannum, 1990:467-468 qutoed in Xanthaki, 2007:165) Therefore, Potier (2001:54) claims that ‘international lawyers have failed to come to an agreement on a stable workable definition for autonomy’. According to his assumption, it is impossible to define autonomy accurately since ‘it is a loose and disparate concept which contains many threads, but no single strand’2 However, although he points at the difficulty of the theory of autonomy, there have been many scholars to explain it from different perspectives. We owe great thanks to forefather scientists in particular Ruth Lapidoth, Hurst Hannum, Markku Suksi, Yash Ghai and Yoram Dinstein...
Words: 297 - Pages: 2
... There is a question, burning in every American’s heart; Is the American Dream, the thing many died in hopes of, still alive today? Many would say no, that we are in recession and that no one is born in equal opportunities, but those people forget the fundamental principles behind the dream. The American Dream is the idea that everyone has the ability to have equal opportunity and lead successful lives, and that idea is still alive because we still have the same laws protecting our rights and the only thing that could rob us of the dream is our own attitudes towards it. The United States Constitution has gone through a few changes over the years, the addition and revision of the first ten amendments and other clarifications being examples. However, every U.S citizen still has the same unalienable rights, the freedom of speech, of press, of assembly, and of religion. These same freedoms are clearly stated in the Bill of Rights and are protected by the government. Rights such as these are what give the United States citizens the ability to achieve the American Dream. What many seem to misinterpret is America’s role in the attainment of the American Dream, America cannot guarantee success, it just provides the tools to lead to it. It is like the provider of a block of ivory and sculpting tools, it is up to the person to sculpt their own vision. As mentioned, it is completely up to the person whether or not the dream is attainable because all citizens...
Words: 657 - Pages: 3
...drives in an over sized truck with an American flag at the back. Being an American is being a Patriot, loving your country men, and your country but not afraid to challenge either in the pursuit of life liberty and happiness for all. America has sense its creation been a diverse multicultural country making blanket statements about feelings and behaviors of its inhabitants impossible. However I think everyone is in some way a Patriot which I equate to being the one defining trait of an American. The simple definition of patriotism is an emotional attachment to ones country. I think this definition has more to it than meets the eye, when you consider the principles this country was built on. This country was built on hard work and determination; the hardships endured only serve to...
Words: 705 - Pages: 3
...Job Satisfaction * Job satisfaction mainly affected by three parts derived from self determination theory - autonomy, or the desire to self-organize their own actions and for their actions to be causal - competence, or the desire to feel capable in affecting their surroundings - relatedness, or the desire to feel connected to and respected by a social group. That is, extrinsic incentives are thought to potentially crowd-out satisfaction if they are perceived as controlling, but conversely can crowd-in satisfaction if perceived as supportive of one’s psychological needs. * After doing the survey, it is found that wage and job satisfaction are positively correlated, but after the introduction of voice and autonomy, that relation becomes less significant * Revenue-sharing payment schemes only improve worker productivity when workers also have influence over their workplace Research of relationship between Voices and Employee Satisfaction Colquitt and colleagues (2001) * Voices positively related to outcome satisfaction (rcorrected = 0.45) * Voices positively related to job satisfaction (rcorrected = 0.37) Contingencies * Types of voices * Union voice leads to a higher job satisfaction when comparing with only one type of voice (e.g. Bryson, 2004) It is because union voice provides more opportunities and channels for the employees to raise their voices, especially the complaints. If the voices are accepted and the situation is improved, employees’ attitudes...
Words: 297 - Pages: 2
