Blog Post 8

Jazmin Rose
Nov 1 · 1 min read

Chapter 6 was an interesting read. Compensation is the money received by an employee from an employer as a salary or wage and productivity is the output per hour.

The labor market is no different from the market for anything else; some kinds of talent are in greater demand than others. To better explain this Wheelan used Alex Rodriguez, MLB baseball player, as an example. Rodriguez earns millions because he can hit the ball faster and harder than most, sells merchandise, and helps earn tv revenue and fill the stadiums. Wheelan argues that the people comfortable in America have invested in human capital, the skills, knowledge, and experience possessed by an individual, viewed in terms of their value to a country. These people are the doctors, engineers, surgeons and accountants.

I think tying compensation to productivity is fair. Higher wages attract workers with more and better skills. I think workers should discuss their salary with their manager based off their talents and needs but should be able to come to a reasonable agreement. Companies who pay higher and offer good benefits in return get more loyalty and productivity increasing its revenue. For example, stock compensation is a way companies use stock options to reward employees, and I think it is awesome because employees feel that they have ownership within the company and feel more connected to the business.

Jazmin Rose

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Engineering Economic Temple University