Problem
Lack of response to monetary incentives
Other Names:
Failure of wage incentives Nature:
The modern industrial system assumes a certain response by workers to wage incentives. However, this cannot be taken for granted among peasant populations or other traditional groups of the agrarian society from which industrial manpower has to be drawn in developing countries. Wage incentives may have relatively little appeal to people whose economic organization has been of a non-monetary nature and who find their satisfactions chiefly in traditional rewards, whether economic or via recognition and prestige. Customary types of consumption may lead to money being regarded as no more than a means of fulfilling certain limited requirements. Thus, in addition to the expected limitations of the potential labour supply due to ignorance and ill-health, the flow of workers into industry in developing countries may also be subject to powerful restraints arising from different expectations and cultural patterns of the population.
Broader Problems:
Lack of incentivesSocial underdevelopmentSuperficial motivation initiativesInappropriate employment incentives Aggravates:
High labour turnoverEconomic underdevelopmentWorkers uninterested in productionAdverse effects of high-yield grain in traditional agricultural settings Strategies:
Providing wage incentivesResponding to monetary incentivesAbstaining from response to monetary incentives Subject(s):
Commerce → MoneySocial Activity → Employment conditions
Societal Problems → Failure
Societal Problems → Scarcity
Related UN Sustainable Development Goals:
Problem Type:
D: Detailed problems Date of last update
04.10.2020 – 22:48 CEST