Economics of labor The Postal Service answers that it must pay higher wages than workers could...

Economics of labor

The Postal Service answers that it must pay higher wages than workers could get elsewhere in order to keep the quitrate below average. Is the postal office right and why?

Expert Solution

The quit rate rises when the economy is strong. If the workers feel that they can get a better paying job at some other opportunity that what they are currently earning, they will tend to quit and join some other organization.

If the economy is strong, the companies expand and naturally jobs are created. There is a demand for workers which means that the wages rise as well. So employees quit their current companies.

So if the current employer incentivises the employees enough that they cannot get a better paying job elsewhere, they will not want to quit voluntarily and the quit rate will fall below normal.

So if the Postal Service gives higher wages than the industry average, it can attain a lower quit rate than the average purely from an economic point of view not considering any other factors like working conditions, or relationship with other employees and supervisors.

If you found this helpful, please rate it so that I can have higher earnings at no extra cost to you. This will motivate me to write more.

Rahul Sunny answered 1 year ago

(principles of microeconomics) provide four reasons why some workers receive higher wages than other workers? explain...

(principles of microeconomics) provide four reasons why some workers receive higher wages than other workers? explain two factors which shift the demabd for labour and two factors which shifts the supply of labour. explain why the value of the marginal product curve for labour is also the demand for labour curve in a perfcetly competitive labour market

1- Competition among entrepreneurs will result in Select one: a. Workers getting paid higher wages than...

1- Competition among entrepreneurs will result in Select one: a. Workers getting paid higher wages than otherwise due to better alternative employment opportunities available. b. Consumers paying higher prices than otherwise, due to increased cost. c. Entrepreneurs making higher profits than otherwise due to increased efficiency. d. Less product innovation than otherwise due to increased cost pressures and lower research budgets.

the higher the anticipated inflation rate, ... a. the more workers will ask for in wages...

the higher the anticipated inflation rate, ... a. the more workers will ask for in wages and the more firms will agree to pay b.the more workers will ask for in wages and the less firms will agree to pay c. the less workers will ask for in wages and the less firms will agree to pay d. the higher the real wage increases offered by firm e. the higher the real wage increases asked for by workers

home / study / business / economics / economics questions and answers / Suppose that workers...

home / study / business / economics / economics questions and answers / Suppose that workers are deciding whether to be a part of a union. If they join the union, the wage will be $31, the probability of employment will be 98%, the union fees will be $1.27, and the social costs are $.92. If they do not join the union, the wage will be $27, the probability of employment will be 94%, the union fees will be $0,...

workers with higher levels of education tend to earn higher wages. given the individual’s discount rate,...

workers with higher levels of education tend to earn higher wages. given the individual’s discount rate, the present value of the benefits of the investment are greater than or equal to the present value of the costs of the investment. The internal rate of return associated with the investment is positive. All of these. QUESTION 32 Holding all else constant, workers in industries that pay higher wages have lower quit rates. This finding is consistent with the view that quits...

21. Why do some jobs pay higher wages than others? Explain using the supply & demand...

21. Why do some jobs pay higher wages than others? Explain using the supply & demand shifters in the market for labor.

As a future graduate that will enter the labor market, correlate the discussion of higher wages...

As a future graduate that will enter the labor market, correlate the discussion of higher wages from the employer with the possibility of diminishing returns from attaining your college degree. Explain the answer.

Underlying Assumptions: Men and women are equally productive. Men’s wages are higher than women’s wages for...

Underlying Assumptions: Men and women are equally productive. Men’s wages are higher than women’s wages for the same work. Profit maximization. men women output per hour 20 units 20 units wage per hour $20 $18 Given these three assumptions, why would a business ever hire a man? One our assumptions must be wrong! Which combination of workers would maximize profits?

How are wages set in the labor market? Are workers and companies Wage (price) setters or...

How are wages set in the labor market? Are workers and companies Wage (price) setters or wage (price) takers or both? Explain how a company or a worker can be a wage setter, while other companies and workers are wage takers. Hint: A wage setter is where the company/worker decide how much to pay/how much the wages should be and wage taker is where the company pays what the market wages are, no more or less.

Moretti (2004) finds that higher education has significant positive externalities on wages of all workers. This...

Moretti (2004) finds that higher education has significant positive externalities on wages of all workers. This suggests that Group of answer choices High skill and low skill workers are complements in production. A larger share of workers with higher education causes employers to choose labor-biased technology. A larger share of workers with higher education increases the productivity of all human capital levels. Workers can 'pick up' human capital from working with high skill co-workers.

Question