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Suppose utility is a function of wages w and effort e like (,) =, and workers maximize the utility function with a discount rate r. Then let b be the probability per unit time that a worker is dismissed from his job, and now we introduce the expected lifetime utility V u {\displaystyle V_{u}} of an unemployed individual.
Skilled labour costs more to produce than unskilled labour, and can be more productive. Generally Marx assumed that—irrespective of the price for which it is sold—skilled labour power had a higher value (it costs more to produce, in money, time, energy and resources), and that skilled work could produce a product with a higher value in the ...
The author finds that the differences in wages between labour markets is at around 20%, and that between Aberdeen and Rochdale, 50% of this difference is explained by workers' characteristics, the other part is not explained. The unexplained differences can be thought of being consequences of differences in local areas attractiveness.
Adjust labor cost to financial results – the basic idea is to create a bonus plan where the company is paying more bonuses in ‘good times’ and less (or no) bonuses in ‘bad times’. By having bonus plan budget adjusted according to financial results, the company's labor cost is automatically reduced when the company isn't doing so well ...
In economics and accounting, the cost of capital is the cost of a company's funds (both debt and equity), or from an investor's point of view is "the required rate of return on a portfolio company's existing securities". [1] It is used to evaluate new projects of a company.
The most important of these assumptions are that the value of labour power is proportionate to the actual wage rate, that the ratio of variable capital to surplus value is given by the price ratio of wages to profit, and occasionally also that the value of the depreciated constant capital is equal to a fraction of the capital’s money price.
Conditional on producing the amount of output consistent with, say, the middle isoquant, the lowest cost can be obtained by using amounts of labor and capital such that the point on the given isoquant is on the lowest possible isocost curve—that is, at the point of tangency between the given isoquant and one of the cost curves.
The value of labour power is thus a historical norm, which is the outcome of a combination of factors: productivity; the supply and demand for labour; the assertion of human needs; the costs of acquiring skills; state laws stipulating minimum or maximum wages, the balance of power between social classes, etc.