Labor vs. Leisure: Tradeoffs and Intrinsic Motivation

Objective: 
Students will analyze the labor-leisure tradeoff and the role of intrinsic (nonmonetary) compensation in career and life decisions. They will examine how individuals weigh financial incentives against personal values, fulfillment, and time. 

Materials Needed: 

  • Handouts explaining labor-leisure tradeoffs and types of compensation (monetary vs. intrinsic). 
  • Real-world examples of job roles offering high intrinsic rewards. 

Lesson Steps: 

1. Introduction (10 minutes): 

  • Define labor-leisure tradeoff: The balance individuals make between earning income through work and enjoying leisure time. 
  • Discuss intrinsic compensation: Nonmonetary rewards like job satisfaction, purpose, or recognition that motivate individuals. 
  • Provide examples: 
  • High-paying but demanding jobs with little leisure (e.g., corporate executives). 
  • Intrinsically rewarding but lower-paying roles (e.g., teachers, artists, non-profit workers). 

2. Viewing Clip (5 minutes): 

  • Set the context: Highlight the tradeoff between the intrinsic reward of serving honorably and the loss of leisure and personal safety. 

3. Group Discussion (15 minutes): 

  • Divide students into small groups to discuss: 
  • What factors influenced Eddard Stark’s decision to accept the role of Hand of the King? 
  • How does this decision illustrate the labor-leisure tradeoff? 
  • What intrinsic rewards might have motivated him? 
  • What risks or sacrifices did he make in terms of leisure and personal well-being? 

4. Concept Application (20 minutes): 

  • Case Study Analysis: 
  • Provide examples of real-world jobs and ask students to analyze the tradeoffs: 
  • Corporate lawyer: High monetary compensation, low leisure, limited intrinsic rewards. 
  • Park ranger: Moderate monetary compensation, high intrinsic rewards, more leisure. 
  • Entrepreneur: Variable monetary compensation, high intrinsic rewards, low leisure. 
  • Ask students to evaluate: 
  • How do individuals prioritize monetary and intrinsic compensation differently? 
  • How does personal value alignment impact these decisions? 

5. Wrap-Up and Reflection (10 minutes): 

  • Summarize key takeaways: 
  • Individuals prioritize labor, leisure, and compensation based on personal goals, values, and circumstances. 
  • Intrinsic rewards can often outweigh monetary compensation in motivating career choices. 
  • Wage changes can significantly impact labor supply decisions, illustrating key economic principles like the backward-bending supply curve. 
  • Pose a reflective question: How would you balance labor and leisure in your ideal future career? 

6. Activity or Homework (20 minutes): 

  • Design Your Ideal Job and Respond to Wage Changes: 
  • Have students imagine their future ideal job, considering: 
  • Balance of labor and leisure. 
  • The mix of monetary and intrinsic compensation they value. 
  • Potential tradeoffs they are willing to make (e.g., longer hours for higher pay). 
  • After designing their ideal job, introduce the following scenarios: 
  • Scenario 1: The wage for their job increases by 10%. 
  • Scenario 2: The wage for their job increases by 1000%. 
  • Ask students to discuss and record: 
  • Would they work more, less, or the same in response to each wage increase? Why? 
  • How do the additional earnings compare to the value of their leisure time? 
  • Would the increase in wages alter their preferences for monetary versus intrinsic rewards? 
  • Groups present their job designs and discuss how wage changes influenced their decisions. 
  • Facilitate a class discussion: 
  • Highlight how individual preferences can lead to the backward-bending supply curve for labor, where extremely high wages might lead to reduced labor supply as workers prioritize leisure.