labor contract and work incentives
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Labor Contract and Work Incentives. Labor Economics Series. Supply-Demand Model. How to pay?. Wage = VMP. Wage. S. Eq. W. D. E. Employment. LABOR MARKET CONTRACTS and WORK INCENTIVES. PIECE RATES TIME RATES BONUS PROFIT SHARING TOURNAMENTS DELAYED COMPENSATION - PowerPoint PPT PresentationTRANSCRIPT
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Labor Economics Series
Labor Contract
and Work
Incentives
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Supply-Demand Model
Employment
Wage S
D
EqW
E
Wage = VMP How to pay?
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• PIECE RATES • TIME RATES • BONUS• PROFIT SHARING• TOURNAMENTS • DELAYED COMPENSATION • EFFICIENCY WAGES
LABOR MARKET CONTRACTS and WORK INCENTIVES
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• PIECE RATES compensates the worker according to some measure of the worker’s output.
• Lebih dari 75 % TK industri alas kaki dan biji besi (USA) dibayar dengan “Piece Rates”.
• Membutuhkan “Monitoring Cost”.
Piece Rates
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• Tingkat upah harus sama dengan Value of Marginal Product (VMP).
• Bila TK menerima upah dibawah VMP, maka TK akan pindah ke firm lain yang akan membayar lebih tinggi.
• Diterapkan pada firm yang dapat mengukur output dengan mudah.
Piece Rates
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• Short run : depends only on the number of hours the worker allocates to the job and has nothing to do with the number of units the worker produces.
• Long run : firm will make decision on retention and promotion based on the worker’s performance record.
Time Rates
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• Lebih dari 90% TK industri kimia dan baja di USA dibayar dengan sistem ‘’Time Rate’’.
• Time rate system diterapkan pada firm yang sulit mengukur output.
Time Rates
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• Working hard “disutility”
HOW MUCH EFFORT DO WORKERS
ALLOCATE TO THEIR JOBS ?
Piece rate worker :
• TK bekerja untuk maximize utility : semakin banyak output semakin banyak take home salary semakin besar utility
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THE ALLOCATIONS OF WORK EFFORT by PIECE-RATE WORKER
Output
Dollars
r
q*
MR
MC MC able
qable
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Effort and Ability of Workers in Piece-Rate and Time-Rate Jobs
Ability
Utility
x*
Time-rate Workers
Piece-Rates Workers
Worker BWorker A
rq
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• Sulit diterapkan pada firm yang menekankan pada “Teamwork”.
• Trade off antara quality dan quantity dapat ditekan dengan adanya standart kualitas.
Disadvantages of Using Piece-rate Compensation System
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• Upah yang berfluktuasi.
• Rachet Effect, yaitu pandangan yang menyatakan bahwa TK yang memproduksi diatas ketentuan firm dianggap bekerja terlalu mudah sehingga upah diturunkan.
Disadvantages of Using Piece-rate Compensation System
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Bonus
Bonuses are payments awarded to work above and beyond the base salary, and are typically linked to the worker’s (or to firm’s) performance during a specified time period
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• A profit sharing plan redistributes part or the firm’s profit back to the workers.
• Biasanya karena prestasi teamwork.
Profit Sharing
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• Rewards diberikan berdasarkan perbandingan produksi dengan TK yang lain pada firm.
• Sistem ranking.
• Disanvantage : kerja sama untuk membagi rewards
Tournaments
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• Contoh : setiap anggota tim pemenang Super Bowl tahun 1997 mendapat US$ 48.000, sedangkan tim kalah hanya mendapat US$ 29.000
• Contoh : survey terhadap 200 firm di USA menyatakan bahwa terjadi kenaikan upah sebesar 142% dari jabatan Vice President menjadi CEO
Tournaments
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The Allocation of Effort in a Tournament
Effort
DollarsMC
MRhigh
MRlow
F low Fhigh
Y
X
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• TK tidak dimonitor secara terus menerus cenderung melakukan “Shirking” sehingga dilakukan monitoring secara random.
• Terutama dilakukan bila TK lalai melaksanakan tugas.
• Mendorong produktivitas.
Delayed Compensation
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Delayed Compensation
Years on the job
Earnings
D
t*
VMP
C
N
A
B
E
ABD = BCE
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• Delayed-Compensation Contract dilakukan dengan cara membayarkan upah dibawah VMP sampai periode t* dan diatas VMP sampai dengan periode N.
• Periode 0-t* firm membayar dibawah VMP.
• Periode t*-N seolah-olah firm membayar diatas VMP, namun sebenarnya merupakan “pembayaran hutang”
Delayed Compensation
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• Tingkat upah subsisten menyebabkan kekurangan gizi sehingga TK tidak produktif.
• Tingkat upah terlalu tinggi menyebabkan profit berkurang.
• Kenaikan upah mungkin dapat meningkatkan produktivitas
• Kenaikan upah sebesar 1 % akan meningkatkan output sebesar 1 %
Efficiency Wages
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Upah Minimum Kabupaten/Kota• Di Indonesia, upah minimum ditetapkan di tingkat
Propinsi (di Indonesia sebagai pengganti wilayah adalah propinsi). Berdasarkan Pasal 89 UU 13/2003, setiap wilayah diberikan hak untuk menetapkan kebijakan Upah minimum mereka sendiri baik di tingkat propinsi dan tingkat Kabupaten/kotamadya.
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Upah Minimum Kabupaten/Kota• Upah Minimum Sektoral/Propinsi ditetapkan di
beberapa propinsi atas dasar kesepakatan antara organisasi pengusaha dan organisasi sektoral pekerja. Upah Minimum sektoral di tingkat Propinsi dan kabupaten/kotamadya adalah hasil perundingan antara pengusaha dan serikat pekerja dan ditetapkan oleh Gubernur . Di beberapa kota tertentu terutama di kota-kota besar seperti Jakarta, Surabaya dan Medan; Upah minimum juga ditetapkan berdasarkan jenis pekerjaan.
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Bagaimana penyesuaian Upah Minimum diputuskan?• Penyesuaian di lakukan oleh Gubernur setalah
mendapatkan masukkan dari Dewan Pengupahan (Perwakilan Serikat Buruh, pengusaha dan Pemerintah) baik di tingkat propinsi untuk Upah Minimum Propinsi (UMP) dan Dewan Pengupahan kabupaten/Kotamadya untuk Upah Minimum Kabupaten/Kota Madya (UMK)
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Dasar Perhitungan UMK
Informasi terhadap standar kebutuhan hidup di peroleh melalui survey yang dilaksanakan setiap bulan oleh dewan pengupahan.
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Dasar Perhitungan UMK
1. Kebutuhan hidup minimum pekerja2. Indeks harga konsumen 3. Kemampuan, perkembangan dan kelangsungan
perusahaan 4. Tingkat Upah yg berlaku di masyarakat 5. Tingkat perkembangan perekonomian dan
pendapatan perkapita 6. Tingkat/Kondisi Pasar kerja. Informasi terhadap
standar kebutuhan hidup di peroleh melalui survey yang dilaksanakan setiap bulan oleh dewan pengupahan.
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UMK Jawa Timur 2013
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UMK Jawa Timur 2013
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UMK Jawa Timur 2013
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Terima kasih