It’s election day and Cloud 9 has placed pamphlets in the break room encouraging employees to vote for anti-union candidates. Cloud 9 knows that unionization could result in much higher labor costs, so they spend that money to encourage workers to not form a union. This form of managerial opposition is part of the explanation for the decline in unionization rates in the United States.
The video shows how an investment in human capital and diversity can provide significant increases in productivity. Allowing employees to express their individuality brings new thoughts and ideas to the group. Without diversity, the company was trending down, when they embraced the balls of yarn it was trending up. While it was easy to keep everyone and everything the same, the company was not making money. By investing in a more diverse workforce, they were able to become profitable and a much more favorable place to work. The opportunity costs are implied but they are that diversity can have real bottom line impacts. In addition, diversifying your workforce can make you an employer of choice and allow you to hire more highly skilled employees. Lastly, it shows that diversity allowed the male employees to be more free with who they were and thus helped the company become more successful.
I think this video applies to everyone from women to men. Introverts to extroverts, it shows the benefits of staying true to who you are. Additionally, it shows the benefits to companies by encouraging diversity.
Clip suggestion & description submitted by Keven Tarantino
A husband and wife comically discuss their plans for preventing another child, whether to use an IUD or have a vasectomy. The conversation then leads into whether it’s time to go back to work after maternity leave. While she loves her children, she wants to be away from them a bit, but they can’t decide on the best option. One option is to hire a “child minder,” but that would cost nearly the same as her teaching salary, but Sharon is in favor of the option. She’s willing to work full time to pay for someone to watch her children, essentially have zero effective income. Why would she be willing to do something like this? She would derive utility from spending time away from her own children.
In a 1963 Labor Day interview with Walter Cronkite, President Kennedy discusses his position on handling the labor market of the United States with around 4 million unemployed (about 5.5% at the time). Kennedy notes that the growing labor force in the United States requires that if the US wants to “stand still,” they still need to move very fast. Kennedy’s main policy focus at the time was retraining workers who had been displaced by technology and making sure that significant amount of workers have the necessary education to handle the growing workforce.
Kennedy also speaks to the lost jobs in “hardcore unemployed” industries like coal and steel and how it’s important to make sure those workers are retrained because those workers are no longer needed. He then laments that there’s a different issue with older workers replaced by technology and younger workers who don’t have the education to handle that technology. Kennedy ends this portion of the interview with a very powerful quote about the fear of automation:
Too many people coming into the labor market, too many machines are throwing people out.
You can view the entire interview, courtesy of the Kennedy Presidential Library, on YouTube.
This Boston restaurant (Spyce) uses robots to cook food for customers and can cook your meal in 3 minutes or less. Customers order from electronic kiosks at their table and a screen displays which robot station is preparing the diner’s dish. The woks are designed in a way to ensure consistency. The only labor used in the kitchen is the “garden manager” who is responsible for adding toppings and ensuring presentation. The bowls are priced at under $8.
Thanks to Peach for the clip suggestion!
A look inside the robotic warehouse of Alibaba in Huiyang, China. The robots pick up the physical items and deliver them to the workers who are in charge of sorting the orders before shipment. The robots can carry about 1100 pounds of good around the warehouse floor all while not bumping into other robots because of a laser guidance system.
Adam Ruins Everything is a half-hour informational comedy were host, Adam Conover, debunks popular myths. Each episode is divided into 3 segments with some common theme. In the Spring of 2018, James Tierney and I sat down to go through all three seasons of Adam Ruins Everything to pick out examples in each episode that could be used in an economics course. If you’re curious about the paper, you can read about it here.
In this scene, Adam discusses the discrimination aspect of tipping in restaurants. While the segment focuses on the history of tipping in the United States, this scene is poignant because so many students work as waiters or at least have been waited on. Subconsciously, they may be discriminating against minorities without realizing it.
Nick, Kurt, and Dale start up production on their new product, the Shower Buddy. After hiring some workers, they decide to hold a day where employees can bring their kids to work. It turns out that the kids actually started working on the factory floor and are enjoying it. At first blush, it seems like this shouldn’t be happening, but when Nick finds out how productive they have been, he walks away to change the sign instead.
Amy wants to ask her boss for a raise, but she’s nervous. Jonah attempts to encourage her to fight for a higher wage because a portion of the wage gap is partly due to women being socialized that negotiating isn’t in their favor. Amy isn’t in the mood for his lecture, and Jonah gives up.
Tate has no problem sharing his salary, but it’s unclear the main driver of the salary. In reality, salaries are comprised of a variety of skill and compensating differentials as well as potential efficiency payments. Tate has a doctorate of pharmacy, which should result in higher pay for human capital investments. In the clip above he mentions that people could die if he messes up, which probably adds a lot of pressure to his workday. This pressure could be a compensating differential that increases his pay. However, there’s also a chance he’s paid highly so that he doesn’t goof off, which would be an efficiency payment.