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The cost of job loss can be viewed as the cost, which workers or employees would incur if they were to be laid off from work permanently. It is vital to note that workers are paid by their employers, and by doing so, they are placed at an advantage over their unemployed counterparts. The income paid to these workers place them at a risk of undergoing the cost of job loss. The implication of a job loss is that the employees will face a sudden change in their standard of life. This is because the standard of life they were living before will be significantly affected by the huge decline in income. The employers use the aspect of cost of job loss to manage the performance of their employees. The efficiency and hard work portrayed by employees are directly influenced by the cost of job loss. It is noteworthy that the higher the wages an employer pays, the higher the cost of job loss. In other words, the cost of job loss is the foregone income, which an employee was earning before being laid off. It, therefore, goes without saying that, employees who receive high wages may experience a high cost of job loss.

 The aspect of efficiency wages has been a headline topic for decades. Some people argue that efficiency wages lead to high productivity while others argue that it may lead to unemployment. However, employers have viewed the aspect of efficient wages as a means of coercing their employees to work harder and deliver desired results. It is crucial, however, to note that efficient wages increases the cost of job loss. Employers argue that wage pay is not only determined by the current market forces, but also by the expected productivity at work. Employers who pay their employees wages higher than the market clearing wage expect efficiency and high productivity at word. In addition, the employers believe that the increased productivity will be sufficient to cater for the increased wages. However, such high wages are directly responsible for high cost of job loss. The income earned by such employees is high and, therefore, in case of a job loss, they will be immensely affected. It is clear that the higher the wages, the higher the cost of job loss.

The cost of job loss is directly influenced by the policies, which the federal or state government implements. It is the duty of the state leadership to guarantee that the workers are paid reasonable wages, which is enough to offer them a decent life (Noble, 1984). The policy on minimum wages is a factor, which influences the cost of job loss. As discussed above, high wages will attract a high cost of job loss. If the government adopts minimum wage policy, which sets the wages at a low level, the cost of job loss will be low. On the contrary, high minimum wage will attract a high cost of job loss. It is, however, vital to note that the minimum wage in the United States has been set too low and, therefore, the cost of job loss is low. In an effort of cutting costs, the government has resorted in contracting projects to private firms who pay little wages. In effect, this lowers the cost of job loss. The key objective of every employer is to maximize profits. They have the right to hire or fire, and this places them at a position where they can directly influence the cost of job loss. Employers determine the wages, which employees earn and, therefore, influence the cost of job loss. It is evident that employers cause the cost of job loss when they fire employees. As employers seek high profits, they determine the amount of wages paid to employees, hence affecting the cost of job loss.

According to Bowles, however, efficiency wages are only payable in bureaucratically controlled work places. In such workplaces, there are set rules and guidelines, and every worker is assigned duties with expected results. The wages a worker receives in a bureaucratically controlled workplace is directly proportional to his or her performance. It is clear everybody can agree with Bowles since every employer will pay wages in accordance to performance. Bureaucratic control can be compared to an institutionalized capitalist power, where power emanates from the formal organization, rather than from a capitalist.

Social organization of the workplace involves the relationship between the employer, managers, foremen and the employees. This relationship may affect the wages the employees receive. In a capitalist economy, employers will place the businesses in places where workers unions are less efficient or are banned. This will help them in ensuring that the employees comply to work under the employer's terms. In other instances where the employees are not compliant, the employer may decide to provoke a strike and lock out the employees outside. The employer does this in the hope that the employees will feel the pain and agree to work under his terms. By doing so, the employer, will manage to control the wages he or she pays the employees. The social organization in the workplace like how jobs are organized affect wage levels. The organizational jobs may be organized in hierarchical order, giving managers the ability and power to hire or fire (Braverman, 1998). Employers organize the workplace by defining what roles are delegated to each worker. They also define the rules of the workplace, as well as, workers' rights. Punishments and rewards for different actions are also defined, and this organization is viewed as a system of control.

Code: Sample20

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