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no, higher pay normally implies higher skills to me. being productive isn't directly correlated to how skilled someone is. Though being productive means someone get to keep their job longer which returns higher pay over time
One argument I hear in favor of higher minimum wages is that they increase productivity at the workplace. While I am a minimum wage worker I am not so sure about this. I do believe that higher wages probably increase willingness to work for longer to make more money, but working longer is not the same as working better.
This just sounds like a cheap excuse to demand pay raises, honestly. Do you believe a higher wage increases productivity at the workplace? Explain your case whatever your standing.
You are in Iceland with what are probably cradle to grave government benefits. In the United States the minimum wage is currently below the poverty line. By raising the minimum wage in the US companies are probably getting a better employee because they now don't have to work a third job to make ends meet.
[quote=ScoopLV;38550434]Higher wages means less stressed-out, burnt-out employees; means higher quality of work.
I wish I wasn't so technotard and I could put one of those rolling on the floor laughing emoticons here. Thanks for a much needed laugh after working yet another double shift. You haven't dealt with the public much have you. I have to rep you just for the laugh.
Higher wages applied to everyone in a group do not increase productivity (or even increase morale), unless they are given as a reward for better productivity. On the other hand, wages that are too low, or jobs that offer no path to higher rewards--will definitely DECREASE productivity, and decrease morale.
As long as wages are in the "acceptable" range, an employer must understand what motivates each individual employee in order to tailor incentives and get more productivity. Awards or recognition for work well done often works, as long as they do not put employees in competition with each other.
You are in Iceland with what are probably cradle to grave government benefits. In the United States the minimum wage is currently below the poverty line. By raising the minimum wage in the US companies are probably getting a better employee because they now don't have to work a third job to make ends meet.
Thank you for bringing this to attention. I didn't realize the OP was coming from the perspective of someone from Iceland.. (i missed it)
The underlined portion along the same lines of my original post. I am not sure about Iceland but yes.. in the US we still have minimum wage earners that cannot make basic necessities (many on welfare too).
no, higher pay normally implies higher skills to me. being productive isn't directly correlated to how skilled someone is. Though being productive means someone get to keep their job longer which returns higher pay over time
How much do you think that they are going to let the minimum wage go. When I pumped gas I was paid two dollars an hour back in 1972. Forty three years later the minimum wage is $7.25 with some states higher. In 1978 my Firebird was $5000. My most recent car was 29K. That's almost a six fold increase. There are other examples. Nothing is really going up. These minimum wage workers are just catching up to half of where they should be.
I am not sure about Iceland but yes.. in the US we still have minimum wage earners that cannot make basic necessities (many on welfare too).
I'm hoping the OP can give us more insight, but like most developed countries, wages in Iceland are set via collective bargaining agreements. There is no "minimum wage" like here. In *practice* though, the minimum is likely considerably higher than it is here. I was told by someone living in Finland that no one there made less than $20/hr and they have a similar arrangement. They also believed that other Scandinavian countries were about the same. Iceland is a bit poorer than other Scandinavian countries since the crash, however.
Here is what wiki says about Iceland's MW: "None; minimum wages are negotiated in various collectively bargained agreements and applied automatically to all employees in those occupations, regardless of union membership; while the agreements can be either industry- or sector-wide, and in some cases firm-specific, the minimum wage levels are occupation-specific".
Any given job probably has an optimal wage level. Increasing wages increase productivity until that level, and then if wages go even higher eventually the productivity falls down again.
At wages that are too low, workers are likely burned out and stressed and some have long transit commutes because they cannot afford a car. These factors can degrade performance.
On the other hand, at wages that are too high, employees will either get "spoiled" or even end up staying in the job even though they don't like it, because they don't want the cut in pay associated with going elsewhere. This means you will keep a lot of people who aren't very motivated.
Of course, the next question is, what is the optimal wage? And the answer is, "I don't know".
I'm interested as well. Not that I'm an expert in Scandinavian affairs but I just ran into this article (I bolded the parts that I found interesting):
"Sweden, Denmark, Finland and Norway are the gold standards for economic equality and justice. It's not that everyone is equal -- it's that the gap between rich and poor is small enough that it doesn't cause all sorts of other problems. Violence, mental illness ... even obesity. All of these are associated with economically split societies, according to decades of research that went into the book "The Spirit Level," by two epidemiologists.
Another outcome of income inequality is that it's harder to move up in a society. This has been proved by data, but it's also logical. When the gap is wider, a person has further to go.
"If you want to live the American Dream," said Kate Picket, one of the researchers, "you'd better go to Denmark or Finland."
Their rates of economic mobility are much higher. They achieve this with higher tax rates and better social services. Norway, for example, provides 10 weeks of paid paternity leave. College and health care are free in Denmark. When these tools exist and are available to everyone, it matters less how rich you are at birth. You have the same tools for success as everyone else."
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I have to rep you just for the laugh.
