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Lepak, D.P, and Snell, S.A. (2002). Examining the human resource architecture: the relationships among human capital, employment, and human resource configurations,. Journal of Management 28, 517-543.

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Article

The Impact of Wage and Labour Flexibility on Employers and Employees

1Ono Academic College, Faculty of Business Administration and Bar-Ilan University Department of Management, Israel

2Department of Economics and Business Administration, Ariel University, Israel

3Chair Department of Management, Bar-Ilan University, Israel and Visiting Professor, Department of Economics, University of Pennsylvania, USA and a Professor in Zefat College, Israel


Journal of Business and Management Sciences. 2017, Vol. 5 No. 4, 108-119
DOI: 10.12691/jbms-5-4-1
Copyright © 2017 Science and Education Publishing

Cite this paper:
M. Weber, L.D. Gonen, U. Spiegel. The Impact of Wage and Labour Flexibility on Employers and Employees. Journal of Business and Management Sciences. 2017; 5(4):108-119. doi: 10.12691/jbms-5-4-1.

Correspondence to: M.  Weber, Ono Academic College, Faculty of Business Administration and Bar-Ilan University Department of Management, Israel. Email: weberm@biu.ac.il

Abstract

labour market flexibility, working time arrangements and work-life balance are important issues on the political agenda of many societies. The present paper captures the trade-off between the interests of employers and employees by adjusting working hours to the employee availability constraints. A theoretical model is developed in order to determine the ideal wage gap between full-time and part-time employees. The paper proposes a method of computing a "fair" wage rate for part-time employees that is driven by purely financial considerations which ensure that neither employers nor employees are penalized by the employment arrangement. The ideal wage that is identified can serve as a benchmark for a "justifiable" wage gap (also referred to as "wage differences") between part-time and full-time employees. Policymakers can rely upon the method presented for computing a "fair" wage rate for part-time employees. Another dimension of labour flexibility in the field of Human Resource Management is discussed in order to define an appropriate wage gap between part-time and full-time employees.

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