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Showing posts with the label maternity leave

Decision Making as Output and Bounded Rationality

  The classical economics theories proceed on the assumption of rational agents. Rationality implies the economic agents undertake actions or exercise choices based on the cost-benefit analysis they undertake. The assumption further posits that there exists no information asymmetry and thus the agent is aware of all the costs and benefits associated with the choice he or she has exercised. The behavioral school contested the decision stating the decisions in practice are often irrational. Implied there is a continuous departure from rationality. Rationality in the views of the behavioral school is more an exception to the norm rather a rule. The past posts have discussed the limitations of this view by the behavioral school. Economics has often posited rationality in the context in which the choices are exercised rather than theoretical abstract view of rational action. Rational action in theory seems to be grounded in zero restraint situation yet in practice, there are numerous restra

Economics in Practice in Work Life

  Economics as we have noted before has numerous applications in real life. Each of those past posts that have dealt with economics in action in real life have tended to theorize the practicalities on the ground through the prism of concepts in economics. The present post too would continue to be in the series to demonstrate how economics helps in real life   Real Life Practice/ phenomenon   Economics Linkage   Extending maternity leaves from 90 days to 180 days is counterproductive   This is an argument quite a number of economists and practitioners often make. When the government of India did extend maternity leaves from 90 days to 180 days a few years ago, social media was flooded with comments on how this could be detrimental to the employment of women in the industry. Their reasoning was simple. The firms are constantly endeavouring to reduce costs. If they are faced with the prospects of paying six months of pay wi