Why might some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor? Check all that apply.

Higher wages cause workers to shirk more of their responsibilities. Paying higher wages encourages workers to be more productive. Paying higher wages enhances workers to adopt healthier lifestyles, enhancing their productivity. Paying higher wages increases worker turnover.

Question

Business

Guest

12 April, 01:09

Why might some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor? Check all that apply.

Higher wages cause workers to shirk more of their responsibilities. Paying higher wages encourages workers to be more productive. Paying higher wages enhances workers to adopt healthier lifestyles, enhancing their productivity. Paying higher wages increases worker turnover.

+4

Answers (1)

Know the Answer?

Teresa Hodge · Answer 1

Paying higher wages encourages workers to be more productive

Paying higher wages enhances workers to adopt healthier lifestyles, enhancing their productivity.

Explanation:

Commonly the minimum salary is the average salary for an specific job, it means that if you receive a salary below the average, it is not a profitable job. at the beginning of the management theories and economic investigations, the studies said that there was not a difference between workers with minimum salaries or workers with salaries above the market.

Recently results have shown that workers with higher salaries feel motivated and reduce the worker turnover; they have a stability and they will try to keep that benefit. by the other hand, as a natural economic rule, when a person receives higher incomes they rise their live conditions improving the life style. All this situation causes the satisfaction of basic needs, as a result the people feel happier and they will increase their productivity to keep the positive situation.