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Our "Let's Volunteer" Policy: Workers will receive fifteen minutes paid time off for each hour of time volunteering in the community

Business Jan 18, 2021

Our "Let's Volunteer" Policy: Workers will receive fifteen minutes paid time off for each hour of time volunteering in the community. However, the maximum benefit workers may receive each calendar year is sixteen days off for sixty-four volunteer hours. How would economists describe the policy and the response they expect from workers? A This policy provides a negative incentive for paid time off, and many workers will take advantage of the company. B This policy provides a positive incentive for volunteering, and workers at this company will probably volunteer 64 hours in the community. C This policy provides a negative incentive for volunteering, and workers at this company will not be willing to volunteer for more than 64 hours in the community. D This policy provides a positive incentive to start volunteering, and workers at this company will probably volunteer for many more hours than 64 because they will enjoy it once they get started.

Expert Solution

Initially, the workers are motivated to volunteer in the community as they will get 15 minutes of paid time off for every hour of time they spend on volunteering.

 

So, they try to avail benefit of this and volunteer for more hours. This is a kind of a positive incentive that is given to employees to start volunteering.

 

As the workers continue volunteering, they may start to enjoy it. Even though initially they started it because of the positive incentive of paid time off that they were getting, but gradually they will continue to do it for their own enjoyment.

 

The incentive is no longer required and as a result, workers may volunteer for many more hours than 64.

 

Thus, option D is correct.

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