Suppose that all employers in the internet industry currently allow their progra

Question

Suppose that all employers in the internet industry currently allow their programmers and web designers to work from home–which appeals to those with childcare or other responsibilities that can be accomplished at less cost than if they had to leave home and commute to work. Now suppose that these employers become convinced that they can increase the productivity of their programmers and designers by requiring them to work together in company offices. That is, the internet employers come to believe that both creativity and a more positive company culture will be stimulated among their workers if working from home is no longer allowed. Use the concepts covered in Chapters 2 and 3 to analyze the likely labor- market effects of this new policy on the internet industry.

Explanation / Answer

Mostly women are responsible for the work of childcare and other household responsibilities . So after the new policy the supply of such workers , specially women is likely to decline . A decline in supply of workers will cause the equilibrium wage to rise and equilibrium quantity of workers to fall . This is the immediate effect of the policy . The internet industry will have to pay higher wages .

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.