Question

Consider the labor discipline model. According to the model, workers supply (extra) effort to make sure that they can keep a job that generates an employment rent. Explain in a few words how the following factors affect employment rent.

(a) Unemployment benefits paid for a shorter duration of time.

(b) Announcement that the plant where you work currently will close after six months.

(c) A decline in the demand for the product that your company sells

(d) The departure of your boss.

Answer 1

A)

Reducing the maximum duration of unemployment benefits is one strategy used to reduce unemployment.

Reducing the duration of unemployment benefits increases the exit rate from unemployment. Data from seven studies show that the exit rate from unemployment for those with reduced duration of benefit entitlement on average is 10 per cent. This corresponds to a 52% chance that those with reduced duration will find a job before an unemployed person with the existing, longer duration .

There is not enough evidence to determine effects on the exit rate from re‐employment or on the wage rate in the job found. There are insufficient high‐quality studies to allow an examination of variation of effects.

B)

it is the notice published by the head of department on informing the staff of closing of company it may bhi for any reason for insolvency curuption unavailability of resources etc.

There are many reasons why an organization may need to close a plant, ranging from financial hardship, bankruptcy, or even a pivot away from producing certain goods. No matter the reason, though, HR and upper management will always need to notify staff members of the upcoming closure. This is where a plant closing notice comes into play.

C)

The demand plays a major role in the sale of any goods or services so the business is done for the profit motive but If there is less demand then there is verry low chance of the bussiness to survive In Market for long run  

Sales performance results from different factors in the business, like the marketing strategy, the product or service itself, the management, customer service, or the market.Conversely, demand can decrease and cause a shift to the left of the demand curve for a number of reasons, including a fall in income, assuming a good is a normal good, a fall in the price of a substitute and a rise in the price of a complement.

D)

It refers to the situation in which the boss or the manager is resignes Or quit the job for any reason weather personal or organisational .