Written response Assignment Example | Topics and Well Written Essays - 750 words

Written response - Assignment Example Card and Krueger disproved those who argue that raising minimum wages is bad for employees because it will result to loss of jobs and lower fringe benefits and bad for the economy because it can result to closing of stores and lower number of new stores to be opened. I agree with these findings because higher minimum wages would not necessarily reduce food demand, so the labor demand remains the same, or it would even be higher, if food demand increases after the wage increased. However, minimum-wage increases must be indexed to inflation to avoid the erosion of real wages and to reduce poverty and income inequality. I believe that that their findings, which showed that increasing minimum wages is not necessarily bad for employees (as some critics of wage increases suggest, because it did not result to lower employment and fringe benefits), make sense because higher wages will not necessarily impact the demand for fast food products and demand for experienced, motivated workers. Card and Krueger showed that employment level even increased because of high demand, despite the recession during this time. If food demand remains the same, then stores would need the same number of people. In addition, if, because of the recession, more people ate at fast food restaurants where food products are cheaper, then demand for fast food would even increase. A rise in food demand will influence store owners to hire more people. Furthermore, with more customers, store owners would not find it rational or moral to reduce fringe benefits, such as free food or reduced food prices for employees. Store owners may se e these fringe benefits as motivators for their employees too, so it would not be reasonable for them to remove it. At the same time, store owners should also consider the competition for experienced fast food workers. Though they do not need workers to have some level of college education, some store owners may want more experienced workers

The Hawthrone Effect Term Paper Example | Topics and Well Written Essays - 250 words

The Hawthrone Effect - Term Paper Example Regardless of how they act in a real life setting, they will change their behavior to match what is expected or assumed of the experiment. It is also possible for the researchers themselves to fall prey to the Hawthorne Effect to sway the results towards their own expectations. The significance of the Hawthorne Effect is that it causes the results of experiments to be inaccurate. If the subject is aware of the hypothesis of the experiment, they have all the information that they need to change their behavior to influence the direction of the experiment. However, if the subject is not being honest about their behavior, then the experiment risks being a failure and becomes a waste of time and effort. By implementing the Hawthorn Effect into an experiment, the subject is not allowing the researchers to understand a concept or specific behavior. One example of the Hawthorne Effect is if Chip Company One were conducting a taste test between their product and the product of a rival. If the researchers made it known which product was theirs, odds are the subjects of the experiment would automatically say that that product tasted the best. Another example is the famous experiment which coined the term Hawthorne Effect. The experiment involved seeing if lighting had an effect on the productivity of people working in a business.