Please help me with this.?

Question

When workers are paid more they tend to work less. Therefore, employers should never grant workers a wage increase

i know that this has to be false.. but why is that? couldnt find any useful graphs either.

Answer 1

There are a handful of situations where workers work less when they are paid more.  They can all be simplified to situations where workers only need a certain amount of money.  E.g. if you only need to make $100 per week, that might be 10 hours at $10/hr or only 5 hrs at $20/hr.

But the statement - "when workers are paid more they tend to work less" - definitely does NOT hold true in all (or even in most) situations.  A more common example might be that if you work 10 hrs at $10/hr, and you're promoted to $20/hr, you'll work the same 10 hrs plus additional hours wherever the opportunity cost is between $10 and $20 per hour.  So say you used to mow your own lawn for 2 hrs each week, but you can pay someone else $15/hr to do it.  Then  after the raise you'll actually work more - because the best move would be to work the extra 2 hours, pay someone else to mow the lawn, and pocket the additional cash.

Answer 2

When workers are paid more they tend to work less.

Not a documented statement.

Also in many places as a worker takes on more responiblities they get a raise in pay.

Few places give increases just because a body has occupied space on the payroll.