Employment Relationship
In the Labour-Discipline Model (LDM), the employer sets the wage to minimise the cost of effort. Using the LDM, illustrate and explain how a change in conditions affect the employee’s best response function (BRF) in the following hypothetical cases: a) The fintech firm you work for introduces a well-planned four-day workweek model. The other firms within the sector have a traditional five-day work schedule. [270 to 330 words is the suggested amount for Q3a] [8 marks for diagram and quality of analysis] b) You face two different work-life trajectories in South Africa, one as an unskilled worker, the other as a highly-skilled worker. Use separate BRF diagrams to compare the two different outcomes. [270 to 330 words is the suggested amount for Q3b]