Effect of Increase of Non-Labor Income in Desired Working Hours

While mandatory overtime is utilized in health care organizations as a quick solution to staffing shortages, the consequences of staff and issues with patient care continue to be an ongoing ethical issue. The purpose of this paper is to explore the causes and consequences of mandatory overtime, as well as regulations regarding mandatory overtime.

“By increasing the cost of labor, they reduce the demand for it.” (Zwolinski 6) Businesses could suffer from the wage increase because the expectations of skill from their employees will be much higher. Most people who are unemployed are concerned that the jobs they could once apply for will no longer be an option for work because they are underprivileged. “When jobs are scarce, then immigrants, workers with few skills or little education, and those with limited Englsih proficiency are going to have a harder time convincing employers that their labor is worth $15 an hour then their better-skilled, native, English-speaking competitors.” (Zwolinksi 5) The underprivileged make up a large part of the current employment in businesses.

Increasing the wage for all employees will cost a lot of money for employers. Business will be faced with two decisions, either “raise their prices”, or “simply cut employees or reduce benefits” (Williams). If they choose to raise up prices, then there will be no benefit for the increase of wage. Employees will get an increase in wage, but so is prices of almost everything. And if businesses choose to cut employees and benefits, then the number of unemployment could possibly arise, and the benefits such as paid vacations and PTO, can be easily get demolished.

4. The global economy of today has made it easier for employers to pass labor cost increases on to consumers by raising product or service prices.

When employed labor is involved, productivity in terms of time becomes important, because the employer generally pays the worker in terms of time. For many jobs, then a shift from task-orientation to timed labor occurs, as the laborer’s time becomes the employer’s money. Thus, a separation between work and leisure occurs, as

Labor is an important service that must be available and balanced in an ever growing population. For example, there cannot be a larger number of residents than there is labor or else there will be a definite increase in poverty. In the United States, there is a set law of minimum wage, which has an effect on companies and how they manage their labor force. The increase of the minimum wages affects the overall distribution of hours available, therefore, hurting the amount of labor needed. Conversely, minimum wage also has a major effect on those who recetly entered the workforce. If the minimum wage rises, there will be an increase of the unemployment rate. Correspondley, as the unemployed suffer, the first to be affected will be incoming laborers who are looking for jobs and work experience which is essential for their future. However, the upside of increasing minimum wage is that for those employed who keep their jobs they will earn more income which may increase the

Moreover, in order to efficiently grow supply, companies must hire more workers, creating more jobs. Naturally, the people who fill these jobs will earn money that they too will put back into the economy via spending. This cyclical pattern is known as the multiplier effect, an effect which causes unfathomably rapid growth of the economy. Without minimum wage, however, low-income workers would likely earn less money and therefore stimulate the economy less. Without consistent consumer spending, businesses and jobs alike fall by the wayside, two components of the economy which catalyze economic growth. Thus, without minimum wage, the economy threatens turbulence and even collapse.

For some nurses, mandatory overtime can be an advantage due to financial instability but mostly mandatory overtime can cause fatigue, burnout, injuries, errors, inadequate sleep and deficits in performance. According to research working long hours which consists more than 40 hours a week or over 12 hours a day leads to an increased medication errors and patient mortality. The probability of making medication errors increases tremendously when nurses work longer than 12.5 hours a day. During surveys regarding reasons of overtime, 60 % of nurses stated that overtime was obligatory as part of their job, 29 % of nurses stated that they volunteered and 41% of nurses stated that they were “on call hours” (Bae, 2012)

PBS News Hour defines ceteris paribus as a Latin phrase meaning “all other things remaining equal. This applies directly to work and leisure. When a person decides to have more leisure time they are able to spend their time doing things they enjoy. Working less, means income will not be as high as a person who chooses to work more and have less leisure time. In contrast, more work means less free time. and less work means more time for non-work related activities. The choice a person makes will reflect on their labor income. More work brings higher income and less work provides less

When the cost of labor is increased artificially by legislation instead of through market forces, companies will attempt to reduce their cost. When you pay someone more to work, the assumption is that they will have more disposable income and increased consumption will contribute to the economy as a whole. By increasing the cost of labor without an increase in productivity, market forces will cause a business to look for alternatives either through reduction in work force or by relocating jobs (offshoring). While those who are still employed will see an increase in pay, those lost their job will have no income and the government will lose the taxes associated with those jobs.

As you can see, the income tax function lies on top of the original budget constraint until it reaches £7,475 of consumption. This is because there is no tax for the initial £7,475 as it is a personal allowance. When an extra £35,000 of income is earned (a total income of £42,475), the tax of 20% reduces the total income to £35,475 of net adjusted income. When the income is £90,000 which is the maximum the mother can earn, the income tax reduces her income to £63,990 because of the 40% income tax after £35,000 of income. The curve then kinks away to the left at £7,475, until it reaches an income of £35,475. At this point the curve kinks with a further decrease in the gradient until it crosses the y-axis at £63,990.

The neoclassical model of labor supply which suggests a positive relationship between working hours and earnings has been doubted for years, because there are weak evidences in empirical studies which mostly find insignificant or negative wage elasticities. A recent study by Stafford, T. (2015) on Florida lobster fishermen find a supporting result to the neoclassical model of labor supply on the basis of developing econometric methods and dealing with those issues from previous studies. His contribution is not only on providing complete and more valid estimation of wage elasticity, but also identifying how estimation issues affect wage elasticities and participation, which also shed a light on re-understanding previous labour supply studies.

When the supply of labor is equal to the demand for labor, the labor market is in equilibrium at the intersection between the supply and demand curves. A rise in the money wage will decrease short-run aggregate supply and shift SRAS curve leftward while LRAS curve stay the same. The shift of SRAS curve will result in increase in labor supply while decrease the quantity of jobs. According to the macroeconomic model and basic supply and demand suggests that higher minimum wage will increase the unemployment rate, however many studies have found that increase in the minimum wage have had no measurable or negative effect on the employment and labor economy in the long

Once a you become unemployed, however, you become powerless, desperate for any source of an income. Once in this position, an individual is likely to take a job which is below their capabilities and for less pay.  The difference in class and standing continues to increase. Those with money have the luxury of waiting for a job that strikes their interest, not just a job to make minimum wage.  They can wait until an appropriate job comes up or they can further their education to improve their position even more. Economically, the world is entering into a new phase in which fewer workers will be needed to produce the goods and services for the global population.  For most of the modern era, people's worth has been determined by the value of their labor and skills.

          As we can see from my personal examples and views, workers spend their leisure time more productively that a laborer. Since