Labor Problems. I need help with this problem. Please help.
( , > = '9', Q B i learn-us-east-1-prod-f|eet01-xythos.53.us-east-1.amazonawscom O 0 \\'I1 ET] httpszllleam-us-east-1-prod-fleet01-xythos.53.us-east1.amazonaws.cnmlb0... (1) Do the same thing as in part (c), but for Paul's wages (in separate columns for the A and B wage proles). In other words, at each date of his career, nd the present value of the wages Paul has yet to receive from SuperKleen (if he stays on the job and doesn't shirk). Do this for the remaining present value of leisure too (this is what Paul gets if he stops working altogether at any particular date). e) If Paul shirks (for example he sleeps on the job) and is caught, he is red. One option he has after being red is to take an alternative job where (because the workers are easily monitored) shirking is not an issue. In this job he produces 50 units of output less each year than at SuperKleen. Add columns to your spreadsheet that calculate Paul's productivity each year on the alternative job, and his remaining present value of productivity on that job. Assume that, if he takes this job, the rm offering it just breaks even, i.e. over the course of his career there, he receives a wage prole equal in present value to his remaining productivity there. i) Now consider Paul's incentives to shirk in his job at SuperKleen. If he shirks in any given year, he experiences a gain in on-the-job leisure that year that is worth 50 to him. In that event, he is detected with probability p=.25 (set up your spreadsheet so you can input alternative values of p, and of the value of the extra leisure he gets from shirking). If he is detected, Paul is red and takes his next best alternative (which is either the alternative job or leisure, i.e. early retirement, whichever is higher) for the rest of his career. So, overall, Paul's net gain to cheating consists of: o The extra on-the-job leisure of 50 (which he gets for sure) h G R learn-us-east-1-prod-fleet01-xythos.s3.us-east-1.amazonaws.com C MyNIU Content https://learn-us-east-1-prod-fleet01-xythos.s3.us-east-1.amazonaws.com/560... f) Now consider Paul's incentives to shirk in his job at SuperKleen. If he shirks in any given year, he experiences a gain in on-the-job leisure that year that is worth 50 to him. In that event, he is detected with probability p=.25 (set up your spreadsheet so you can input alternative values of p, and of the value of the extra leisure he gets from shirking). If he is detected, Paul is fired and takes his next best alternative (which is either the alternative job or leisure, i.e. early retirement, whichever is higher) for the rest of his career. So, overall, Paul's net gain to cheating consists of: . The extra on-the-job leisure of 50 (which he gets for sure) w Personnel Economics Exercise 4 . A (1-p) chance of losing nothing . A p chance of the difference between his remaining present value of wages at SuperKleen and the remaining present value of his next best alternative to working at SuperKleen.h G R learn-us-east-1-prod-fleet01-xythos.s3.us-east-1.amazonaws.com C MyNIU Content https://learn-us-east-1-prod-fleet01-xythos.s3.us-east-1.amazonaws.com/560... value Of HIS HIVALUESI alternative to working at Superniven. In your spreadsheet, calculate Paul's net gain to shirking in each year of his career under wage profile A, and under wage profile B. (Hint: use excel's "max" function to pick the higher of two arguments). g) What are Paul's net gains from shirking in his 17" year at SuperKleen under wage profile A? Under profile B? Overall, which profile gives him the greater incentive to shirk? Comment on which stages of his work life where Paul is most tempted to shirk under each profile, and explain. h) Increase the on-the-job leisure Paul gets from shirking from 50 to 100. Does wage profile B still prevent him from shirking throughout his career? Now put this value back to 50 and reduce the firm's detection probability to .1. Now does wage profile B prevent shirking? In each of the above cases, if profile B does not prevent shirking, how would you modify it to prevent shirking?h G R learn-us-east-1-prod-fleet01-xythos.s3.us-east-1.amazonaws.com C MyNIU Content https://learn-us-east-1-prod-fleet01-xythos.s3.us-east-1.amazonaws.com/560... Spreadsheet Data for Question 2 Year Production Value of Leisure Wage Profile A 220 Wage Profile B 100 300 220 100 190 300 350 100 220 400 350 250 100 450 400 100 280 450 500 310 100 510 500 100 340 520 510 100 370 530 520 400 110 540 530 430 110 550 540 460 120 555 550 130 490 555 560 140 520 565 560 150 550 570 565 180 580 550 570 610 200 530 I 550 640 250 500- 530 300 670 500 700 20 450 325 350 450 350 730 350 760
