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To make a decision whether to work or not a rational individual has to estimate possible costs and benefits and advantages of being an employee.

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Introduction

Contents Introduction 2 Fixed costs of working: monetary aspect 2 Fixed costs of working: psychological aspect 3 Decision to work 3 Conclusion 5 Bibliography 6 Introduction In connection with the fact that all of us (students of IBS faculty of Plekhanov's Russian Academy of Economics) are obliged to pass practical course in the seventh semesters, I find the question of working and fixed costs connected with this experience very essential. Generally, it is commonly thought that if a person starts working, he/she only gains but not looses anything, because he/she accumulates experience, he/she is paid salary, which particularly grows with growing experience, and etc. Concerning students, nowadays there is such a tendency among future specialists as starting to work being a third year student or even earlier. Not being the topic of the essay, opportunity costs of combining work and studies will not be mentioned in my essay, though it is also a debatable and very interesting question. But what is actually of interest for me now is what fixed costs of working will be for a student and if the salary will cover them. Fixed costs of working: monetary aspect To make a decision whether to work or not a rational individual has to estimate possible costs and benefits and advantages of being an employee. ...read more.

Middle

His/her leisure time decreases significantly because of full-time working day and increase of time for transportation to the place of work and back home. Decision to work I have mentioned the most common fixed costs of working. Now let us consider possible salary of a person without finished higher education. If we assume that our imaginary student decides to work for a big international company, he/she may expect to be hired on the position of intern only. Nevertheless his/her salary might vary around 30,000 roubles. If we now deduct all costs mentioned above we will get the following: 30,000 - (180 + 400x30 days + 12,000) = 30,000 - 24,800 = 5,200 roubles Actually there is not so much left after deduction of the fixed costs. It is worth mentioning also that the approximate salary was taken without tax deduction. But, despite the fact that actual income of a student, at least at the beginning of his working has to be spent almost entirely to provide an ability to work in decent conditions, there are still arguments for working when being a student. They are as follow: first of all, experience is actually gained; second, is that for the moment when today's working student graduates he will possess so valuable experience and he will not face a problem of looking ...read more.

Conclusion

In three cases costs differ not only in monetary terms but also in psychological aspects and long-term prospects. Conclusion Making a decision whether to work or not is not possible without estimating costs, both monetary and psychologically (which besides comfort things include time consumption, future prospects). In any situation fixed costs are inevitable. Considering the case of a student studying during a practice course, leaving studies after some three years for starting a career and the case of student's temporary work it is found that averaged costs are the highest in case of complete finishing studies without graduation. The highest cost in this case is the long-term cost of not being a certificated specialist, which is a serious disadvantage in the labor market, though the experience is greater than in two other cases. The case of working during a practical course is the best solution for those who want to obtain experience and find potential employers for future. Fixed costs of working at least for the first several months are rather high and are hardly covered by salary though in the long run this alternative yields the highest profits and benefits. The case of temporary work is of the least costs and with lower salary though the decision to work might be taken by a student if he/she wants to obtain some working experience and to earn pocket money. ...read more.

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