Link to source to complete assignment: https://www.core-econ.org/espp/book/text/06.html
As you have read in the textbook’s Unit 6, there are many reasons why people put in a good day’s work. For many people, doing a good job is its own reward, and doing anything else would contradict their work ethic. Even for those not intrinsically motivated to work hard, feelings of responsibility for other employees or for one’s employer may provide strong work motivation. For some employees, hard work is the appropriate way to respond to the employer for providing a job with good working conditions. In other cases, firms use performance-related pay to reward hard work.
However, as you have also read, there is another reason to do a good job—the fear of being fired, or of missing the opportunity to be promoted into a position that has higher pay and greater job security.
Figure 6.2 “presents a hypothetical exercise from the perspective of someone with a job. It sets out the costs and benefits from having a job and compares them with the costs and benefits of not having the job, all on a daily basis.” You need to understand well the process illustrated in Figure 6.2, to be fully empowered to fulfill the requirements of this week’s expository essay, which are as follows.
Figure 6.3 illustrates the case of a worker called Maria. It focuses on “employment rents’ that would be realized when Maria compares her income from employment with what it would be, should she lose her job and be unemployed for 44 weeks. In the US, the unemployment benefit is typically about half of a worker’s wage, and is restricted to 26 weeks. Using these numbers for the unemployment benefit, with the other numbers in the example in Figure 6.3, what is the employment rent?