A Win-Win Solution for Management and Workers in the Tea industry

Abstract

Pareto Efficiency is an important concept in economics. It occurs when all win-win opportunities have been fully pursued. In societies as well as in organisations there are numerous opportunities to make changes that leave no one worse off and improve the lot of at least some (win-win for short). But due to over-sight, or lack of analysis these go unrecognised. It is the task of economists to discover such opportunities and recommend them. There are several such opportunities for the tea industry. This article will focus on just one: changing the incentive structure in wages of plantation workers.