Categories
Labor Unemployment

Reconsidering Layoffs

The Cloud 9 corporate office has told Glenn that he needs to layoff 10% of his staff, but Glenn tries to have Jeff reconsider by inviting him to Cheyenne and Bo’s wedding. He tells Jeff that Cheyenne is severely uneducated, and her job is the only thing standing in the way between her and prostitution. He introduces Jeff to other employees that he notes are right on the poverty line. By having Jeff meet the employees that may be laid off, Glenn is trying to make the opportunity cost more tangible.

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 Unemployment

Last Chance Employees

Jonah is happy that he won the betting pool over which temporary employee would quit first, but it turns out that a lot of these temporary employees are part of a program at Glenn’s church that works with people who have trouble getting jobs. Many of the employees have criminal records or are former drug addicts, and that makes them less likely to be hired without assistance.