Digital Monitoring of Employees

This Marketplace story describes some of the ways that employees can use devices to monitor digitally what the employees are doing: http://www.marketplace.org/2017/02/22/world/meet-workplace-sensors-are-watching-you.

1. How could an employer assess digitally the traits of job applicants to determine which ones to hire?
2. How could an employer monitor digitally what employers are doing or producing to determine which ones to reward monetarily or to promote?

What happens when the Net is Not Neutral?

Keywords. Consumers Are Going to Love the End of Net Neutrality : at First
by: Christopher Mims
Feb 13, 2017
Click here to view the full article on WSJ.com

TOPICS: Internet, Regulation

SUMMARY: The Trump administration looks likely to change a foundational principle of America's tech ecosystem. And consumers are going to love the government's possible first steps at dismantling net neutrality, writes Christopher Mims. "Advocates for 'net neutrality'-the principle that all data transmitted through the internet should be treated equally-argue it is needed for America to cultivate innovative web-focused startups. Critics say that alternatives to net neutrality could lead to innovation and competition in the country's communications infrastructure, where they are badly needed."

CLASSROOM APPLICATION: Students can learn about net neutrality and two policies : zero rating and paid prioritization : that violate net neutrality. They can also learn about the players that favor net neutrality and those that do not, and they can learn about the possible impact on consumers of dropping net neutrality.

QUESTIONS: 
1. (Advanced) What is 'zero rating'? Why do internet service providers practice zero rating? Why do some content providers oppose the practice? What are criticisms of zero rating?

2. (Advanced) What is 'paid prioritization'? How is paid prioritization similar to zero rating?

3. (Introductory) Why is the end of net neutrality a threat to Snapchat?

4. (Advanced) What are the possible impacts on consumers of dropping net neutrality?

Reviewed By: James Dearden, Lehigh University

Big Pharma uses Price Discrimination

Marathon Pharmaceuticals to Charge $89,000 for Muscular Dystrophy Drug After 70-Fold Increase
by: Joseph Walker
Feb 11, 2017
Click here to view the full article on WSJ.com
Click here to view the video on WSJ.com 

TOPICS: Health Economics, Pricing

SUMMARY: Marathon Pharmaceuticals will charge $89,000 annually in the U.S. for a decades-old steroidal drug that was approved for U.S. sale for the first time on Thursday, a price that is as much as 70 times higher than the drug's price overseas. Related article: Marathon Pharmaceuticals will delay the U.S. launch of its muscular dystrophy drug amid mounting criticism of its $89,000-a-year price, including from two members of Congress who launched an investigation Monday.

CLASSROOM APPLICATION: Students can investigate the reasons for the marked difference between the U.S. and U.K. prices, examine the ethics of the price difference, and consider whether Americans subsidize the use of the drug in the U.K.

QUESTIONS: 
1. (Advanced) Research question. Why is the price of deflazacort 50 to 70 times greater in the U.S. than the U.K.?

2. (Advanced) Is it ethical for a pharmaceutical company to set a U.S. price for a drug that is 50 to 70 times greater than it sets for the drug in the U.K.? What criterion could be used judging the ethics of the pricing policy? (In the online interview of the reporter, comment on the reporter's last sentence.

3. (Introductory) Do Americans subsidize use of the drug in the U.K.?

Reviewed By: James Dearden, Lehigh University

The End of Employment?

Questions to consider.

1. Are wages lower for contract workers than employees? If wages are lower, why?
2. Are transactions costs of hiring, supervising and firing lower for contract workers than for employees? Why or why not?
3. Does employment of contract workers instead of employees increase the firm's flexibility? If so, why?

The End of Employees
by: Lauren Weber
Feb 02, 2017
Click here to view the full article on WSJ.com

TOPICS: Labor Economics

SUMMARY: Never before have big employers tried so hard to hand over chunks of their business to contractors. From Google to Wal-Mart, the strategy prunes costs for firms and job security for millions of workers.

CLASSROOM APPLICATION: Students can examine the rationales for the outsourcing of jobs. The reasons fall into two categories : increased flexibility and lower costs.

QUESTIONS: 
1. (Introductory) What are the reasons covered in the article's cases for companies choosing to outsource jobs?

2. (Advanced) According to the article, what is the effect of the outsourcing of jobs on the likelihood that workers are promoted from lower-level positions to higher-level ones, from the mailroom to the executive suite?

3. (Advanced) Why is it that no one knows how many American work as contractors?

Reviewed By: James Dearden, Lehigh University

Here is a summary: https://www.thefastlaneforum.com/community/threads/the-end-of-employees-wall-street-journal.72709/

See http://www.nakedcapitalism.com/2017/02/the-end-of-employees.html for a contrarian review.

See http://www.forbes.com/sites/lizryan/2015/08/13/is-this-the-end-of-employment/#52b332f332d6 to see advice for a contract worker.