Categories
Labor Unemployment

Quitting on Day 1

Bo wants to make $5,000 and then quit his new job, and he thinks he can do that in a week. When he finds out that it’s going to take significantly longer, he begins complaining about how little the store pays for the work he’s doing. He believes his marginal revenue product is significantly higher, but he doesn’t realize that his marginal impact on revenue is actually quite small. His role at the store could easily be automated.

Categories
Labor

Shirking on a Slow Day

The floor manager and the assistant manager have taken time off to host a ladies’ lunch at a nearby restaurant. The guys left in the store have designed a game in that lets them goof off. Since it’s not easy to monitor performance (because the stricter managers are away), it’s easier for the workers to shirk in their responsibilities.

Categories
Labor Principles

Shirking at a Gun Range

On the hunt for a runaway friend, Amy and Dina take some time to hang out and get to know each other better. Right as they’re deciding to head back to work, Amy suggests they treat themselves a bit. Even though the store manager believes they’re away from the store searching for a friend, Dina and Amy are actually shirking

Categories
Labor

A Pharmacist’s Salary

Tate has no problem sharing his salary, but it’s unclear the main driver of the salary. In reality, salaries are comprised of a variety of skill and compensating differentials as well as potential efficiency payments. Tate has a doctorate of pharmacy, which should result in higher pay for human capital investments. In the clip above he mentions that people could die if he messes up, which probably adds a lot of pressure to his workday. This pressure could be a compensating differential that increases his pay. However, there’s also a chance he’s paid highly so that he doesn’t goof off, which would be an efficiency payment.