Net Advantage ??

hi i i was wondering if anyone actually what the definition of net advantage if you could provide some more info. The term net advantage has been used quiet a few times in the OCR A2 2884 (Economic of Work and Leisure) module. My teacher doesnt even know what exactly ocr mean by it he has tried countless texts books even well known websites such as tutor 2 u and cant find any answers. This isn't just an issue that we've had but other school also had to . my teacher has tried phoning up ocr to find out exactly what they mean they cant tell us the correct answer and they made the papers. So if any one knows or has the mark scheme for the june 2004 theres a question in that paper about it please post it up thanks

Reply 1

Sammy.B!

Hi, well i had the same problem it was on one of the past papers wasn't it?

Net advantage, as from what i can gather means the monetary and non precurinary benefits of an individual working, so the wage plus the amount of holidays allowed for example.

I think where it is coming from is that fact that some people, such as the police have potentially dangerous jobs therefore they receive a higher wage to put a monetary value on the possibility fo getting hurt. It might not even be the wage, they could get a company car for example known as compensating differentials.

I think the net advantage is refering to the advantages-disadvantages, but the disadvantages are compensated...

I think, i hope it was of some use...
-sammy

Reply 2

Sammy.B!

The mark scheme for Juen 2004:

3a)

Meaning of perfetly competitive labour market, in terms of freedome of entry, homogenous workers, wage taker, perfect knowledge. Meaning of net advantages as the combination of pay and pecurinary and non pecurinary advantages and disadvantages. Explanation of the long run equilisation process in terms of movement of labour from low to high net advantage, in response to ordinary free market forces..

b)

Identification of the packages of net advantages of both teachers and shop assistants; the discussion of the statement that teachers will always have a higher net advantage than that of a shop assistant. referring to monetary and non monetary disadvantages and advantages of both. The explanation of the factors causing the disparity to exist ( this is basically about inelasticity os supply of teachers)
Transfer earnings concepts, inelasticity of supply can be used usefully. I also think trade unionism is a good point to use too

Reply 3

batroy

Total benefits that an employee derives from employment such as wages/salaries,fringe benefits, job security and the job itself (job satisfaction) less the total costs associated with the job such as opportunity cost of being employed