This essay What Are Economic Incentives? has a total of 1240 words and 8 pages.
What Are Economic Incentives?
Economic incentives are what motivates you to behave in a certain way, while preferences are your needs, wants and desires. Economic incentives provide you the motivation to pursue your preferences.
Economic incentives include cash rewards, bonuses, income and profits
Let's look at a basic example. Let's say you want wealth. You are motivated to work because you will be paid, which will help you achieve your preference for accumulating wealth.
Of course, economic disincentives discourage behavior. Taxes are a prime example of disincentives because they make products and services more expensive.
Extrinsic Incentives and Intrinsic Incentives
Extrinsic incentives come from outside of a person. These are the typical economic incentives that you probably think about all of the time. Extrinsic incentives include cash rewards, bonuses, income and profits. However, it's not all about money. External incentives can include such things as peer recognition, fame, social status and power. Some of these incentives will work better than others, depending upon your preferences. Someone may care more about social status, for example, than money.
Intrinsic incentives are psychological incentives and are internal to the person. Getting satisfaction from work is an intrinsic incentive. The feeling of making a difference in the world is also an intrinsic motivation - regardless of whether you actually make a difference or not. Sometimes extrinsic motivations will trump intrinsic motivations. For example, the idea of building a home for the poor makes you feel good, but you will gladly accept pay to do it, which ends your spirit of volunteering.
Keep in mind that extrinsic and intrinsic incentives are not mutually exclusive. They can work together. For example, you may not care much about money, but you do tend to enjoy power. You also want to change the world. These two incentives motivate you to pursue a political career - for the power and to do good.
Non economic incentives (challenges, recognition, etc.) Vinh Trieu
The purpose of non-economic incentives is to reward associates for excellent job performance through opportunities. Non-economic incentives include flexible work hours, training, pleasant work environment, and sabbaticals.
Research suggests that desired monetary incentives differ for associates based on career stage and generation. Surveys by the American Association of Retired Persons (AARP) have shown that most workers will work past retirement age if offered flexible schedules, part-time hours, and temporary employment (Nelson, 1999).
The generations covered in the AARP surveys include “Mature Workers” (those born between 1930 and 1945), “Baby Boomers” (those born between 1946 and 1963), “Generation X'ers” (those born between 1964 and 1981), and “Generation Y'ers” (those born after 1982). The information presented in Table 1 lists non-monetary incentives that are important to each generation covered in the surveys (Nelson, 1999).
Mature Workers Baby Boomers Generation X'ers Generation Y'ers
Flexible schedules Retirement planning Flexible work schedules Flexible work schedules
Part-time hours Flexible retirement options Professional development Professional development
Temporary hours Job training Feedback Feedback
Sabbaticals Tangible rewards Tangible rewards
Work environment Work environment
Source: http://www2.inc.com/search/16431.html (Nelson, 1999).
Female workers are entitled to four to six months of maternity leave a year depending on the nature of their work. Those with babies under 12 months of age are also entitled to an extra hour off each day for nursing.
Employers must pay 2% of an employee’s salary or wages to an authorized health insurance company for health insurance benefits, and the employee must pay 1% for the same.
Both Vietnamese and foreign invested enterprises must pay an amount equal to 15% of the wages and salaries of its Vietnamese employees to the social insurance fund.
Of this amount, 10% is paid to the local labor office for employment benefits and the other 5% is paid to a social insurance fund established by the enterprise and jointly administered by the representatives of the enterprise.
This fund is used to pay employee benefits related to sickness, work-related accidents, and occupational diseases as well as for maternity leave and benefits, child care and funeral expenses of workers who die during their term of employment at the enterprise.
Foreign workers are exempt from payment to the social insurance fund.
Employers are responsible for withholding 5% of each employee’s salary and paying such amount on their behalf to the local social insurance fund. This fund is used for 1) old age benefits, 2) benefits for those who are permanently disabled through work-related accidents or sickness, and 3) burial expenses related to the first two
Topics Related to What Are Economic Incentives?
Employment compensation, Employee benefit, Salary, Unemployment benefits, Health insurance, Parental leave, Overtime, Working time, Employees Trust Fund, Cost to company
Essays Related to What Are Economic Incentives?
Women Vs. Men In The Work ForceWomen vs. Men in the Work Force In Mrs. Burrows? seventh grade English class, I wrote a paper entitled Women vs. Men in the Work Force. I researched for weeks and weeks to get all of the information I could on pay differences, percentages of working women and what jobs they were doing. In 1988, my paper focused on sexual discrimination and the wage difference. For example, in 1998, ?women received 63% of the pay men received for the same job.? I remember finding that out and asking my dad why th
Unemployment In Europe: Its Impact In The Future Of EuropeUnemployment in Europe: Its Impact in the Future of Europe Unemployment is currently one of the biggest challenges facing the European Union. The fight against unemployment is an essential question that the European Union has to encounter in the short term. Today?s unemployment problem represents the most significant worry of the European Union citizen. Unemployment is the greatest disturbance of the European economy. Approximately 18 million of its people are out of work, an average unemploymen
Affirmative ActionAffirmative Action Thesis: Although many people believe that affirmative Action is a form of racism, it is actually used to help minorities find employment in an otherwise racist world. ?In the United States, equality is a recurring theme. It has flared into a fervent moral issue at crucial stages of American history: The revolutionary and Jacksonian Period, and the New Deal. In each era, the legitimacy of American society is challenged by some set of people unhappy with the degree of equality?
International Human Resource ManagementEXECUTIVE SUMMARY International Human Resource Management(IHRM) can be defined as the methods of selecting, allocating, and utilizing human resources effectively in an international context. IHRM is the methods of selecting, allocating, and utilizing human resources effectively in an international context. MURDOCH is distinguished as a leading Australian and Worldwide famous university. To be successful, the university focuses on attracting, retaining and patronizing those educators who are dedi
Role and Functions of Law Paper Role and Functions of Law Paper LAW/421 Contemporary Business Law Instructor: KURT LOFLAND November 9, 2015 Abstract As we all know that law plays an important role in the successful day to day operation of a business and society, it can also help keep behavior intact and regulate standards. The law in fact is put in place not only to correct criminal, or dishonest behavior, but also to protect. In today’s society often times the cure for any type of wrong doing is to sue; it seems that people
Recruiting and selecting staff for international assignments109 Introduction Hiring and then deploying people to positions where they can perform effectively is a goal of most organizations, whether domestic or international. Recruitment is defined as searching for and obtaining potential job candidates in sufficient numbers and quality so that the organization can select the most appropriate people to fill its job needs. Selection is the process of gathering information for the purposes of evaluating and deciding who should be employed in particular job
Human rights – what do I need to know?Human rights – what do I need to know? Human rights – what do I need to know? 1 1 What are my human rights? 3 1.1 Where do human rights come from? 3 1.2 Where are my human rights written down? 3 1.3 How do countries agree to protect human rights? 4 1.4 Which human rights treaties has Australia agreed to? 4 1.5 Who is responsible for making sure that my rights are respected? 5 1.6 Who can I complain to if I think my human rights have been breached? 6 (a) The Australian Human Rights Commission 6 (
Chapter 28: Revolutions and National States in the Atlantic WorldChapter 28: Revolutions and National States in the Atlantic World 1. ) Ancien Régime - Ï was the old order in France that revolutionary leaders wanted to replace Ï This was the order of: Ë The 1st estate = clergy Ë The 2nd estate = the nobility Ë The 3rd estate = merchants, artisans, and peasants Ë Beorgiouse class (merchants, artisans, and professionals) 2. ) John Locke - Ï wrote the Second Treatise of Civil Government Ï Believed: Ë governments were a result of a social contract between the rul
Legislative Brief Legislative Brief The Prevention of Corruption (Amendment) Bill, 2013 The Prevention of Corruption (Amendment) Bill, 2013 was introduced in the Rajya Sabha on August 19, 2013. It was referred to the Standing Committee on Personnel, Public Grievances, Law and Justice on August 23, 2013. The Committee submitted its Report on February 6, 2014. Recent Briefs: The Real Estate (Regulation and Development) Bill, 2013 June 10, 2014 The Civil Aviation Authority of India Bill, 2013 March 29, 2014 Prianka
Human Resource Management Human Resource Management Name Institution Date Introduction The companies whose human resource departments will be focused on in this case are the Coca Cola Company and Southwest Airlines. Human resource management is an essential part of an organization. The development of this is the first step, the ground on which the future of theÂ company depends. The human resource department plays a critical role on promoting, training, hiring and recruiting individuals fitting the two company\'s strate
Chapter 2 The Employment Law ToolkitChapter 2 The Employment Law Toolkit: Resources for Understanding the Law and Recurring Legal Concepts Notes: Guide to Reading Cases (43): - Stare Decisis and Precedent: o Once a judge renders a decision in a case it is followed in that jurisdiction – the case thus becomes precedent for future cases involving that issue o Federal Courts consist of trial courts (US District Court for a particular district), courts of speak (US Circuit Court), and the US Supreme Court § Supreme Court decisions app
Unemployment and under-employment: the case of Switzerland1 Unemployment and under-employment: the case of Switzerland Dragana Djurdjevic * SIAW, Swiss Institute for International Economics and Applied Economic Research, St.Gallen First Version: August 2003 This Version: November 2003 Abstract I analyze the effect of unemployment on subsequent employment history for Switzerland. Using administrative panel data from the unemployment insurance system and the social security databases, I estimate a discrete time hazard model for the exit from the differen
Smart CitiesMinistry of Urban Development Government of India June 2015 Smart Cities Mission Statement & Guidelines Government of India Ministry of Urban Development (June, 2015) Contents 1. The Challenge of Urbanization 5 2. What is a ‘smart city’ 5 3. Smart City Features 7 4. Coverage and Duration 7 5. Strategy 8 6. Proposal Preparation 9 7. Smart Cities Selection Process 10 8. How Many Smart Cities in Each State/UT? 11 9. The Process of Selection of Smart Cities 11 10. Implementation by Special Purpose V
Human Resource Management Human Resource Management Student Name Institution Affiliation Overviews Human Resource Management can best be portrayed as the zone of an association that is in charge of motivating, retaining, and training employees. In spite of the fact that these are the principle elements of Human Resources, different capacities fall under the umbrella of Human Resource. Throughout the years Human Resources has developed and including numerous more capacities including pay, benefits, execution administrati
GLORIA MACAPAGAL-ARROYO GLORIA MACAPAGAL-ARROYO Primary life Gloria Macapagal-Arroyo was born on April 5, 1947, in San Juan in the Philippine province of Rizal. She is the daughter of former Philippine president Diosdado Macapagal and his second wife, Evangelina (Macaraeg) Macapagal, the daughter of prominent parents who worked as a doctor until the outbreak of war in 1941. Reportedly, Macapagal-Arroyo moved in with her grandmother because she was jealous of her younger brother, Diosdado Jr. After the age of 11, Macap
The aggregate supply curve: The aggregate supply curve: Is explained by the interest rate, real- balances,and foreign purchases effects. gets steeper as the economy moves from the top of the curve to the bottom of the curve. â€¨ shows the various amounts of real output that businesses will produce at each price level Â is downsloping because realpurchasing power increases as the price level falls Growth is advantageous to a nation because it: Â promotes faster population growth. â€¨ lessens the burden of scarcity. â€¨ eli
MASTER OF BUSINESS ADMINISTRATION MASTER OF BUSINESS ADMINISTRATION ADVANCED CORPORATE STRATEGY ( MGT 6266 ) INDIVIDUAL COMPANY CASE STUDY Dutch Lady Milk Industries Berhad Report prepared by: Abdulla Abdulqader Al-Attas (G1430873) Contents TOC \o 1-3 \h \z \u Introduction PAGEREF _Toc467903143 \h 3 Mission, Visions, Value, and Objectives PAGEREF _Toc467903144 \h 4 Business model and other relevant information PAGEREF _Toc467903145 \h 5 External Analysis PAGEREF _Toc467903146 \h 5 The PESTEL Analysis PAGEREF _Toc467903147 \h
TAX TREATMENT OF SALARY -ITS NATURE AND SCOPE TAX TREATMENT OF SALARY -ITS NATURE AND SCOPE SUBMITTED BY STUTI PRIYA OJHA BALLB, 7 TH SEMESTER ENROLL NO. - 0056150813 Contents TOC \o 1-3 \h \z \u INTRODUCTION PAGEREF _Toc467133005 \h 4 WHAT IS SALARY? PAGEREF _Toc467133006 \h 4 CONSTITUENTS OF SALARY PAGEREF _Toc467133007 \h 4 PROVISIONS UNDER INCOME TAX ACT 1961 REGARDING INCOME FROM SALARY PAGEREF _Toc467133008 \h 4 SECTION 15 - CHARGEABILITY PAGEREF _Toc467133009 \h 4 SECTION 16 - DEDUCTIONS PAGEREF _Toc467133010 \h 5 SECTION 17 - DEF
Proposal for Doctoral Research: Proposal for Doctoral Research: THE INFLUENCE OF LEADERSHIP ON EMPLOYEE WORK PLACE SPIRITUALITY , EMPLOYEE MOTIVATION , EMPLOYEE CITIZENSHIP BEHAVIOUR AND ORGANISATIONAL PERFORMANCE IN THE CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY Student name : Petronella Frederika Smit Supervisor: Student Number: 527241 Professor Richard Chinomona [email protected][email protected] Contents TOC \o 1-2 \h \z \u LIST OF ABBREVIATIONS PAGEREF _Toc430676348 \h i 1INTRODUCTION PAGEREF _To
Child Poverty in Canada Child Poverty in Canada Poverty and Health in Canada: Current Evidence and Policy Responses (HLST 3510) Professor Dennis Raphael The campaign 2000 2016 Report Card on Child and Family Poverty in Canada measures poverty through more of a concentrated method. The measurement includes: The Low-Income Measure After or Before Tax Calculated from tax filer data (LIM), The Market Basket Measure (MBM) and Low Income Cut Offs (LICO). Along with the OECD Report on Child Poverty the measurement includes