2015

ECONOMICS SBA

The St. Michael School

 Introduction to the CAPE Economics School Based Assessment

The internal assessment contributes 20% to the candidates’ final mark. It takes the form of a

report (2000-2500 words) which should be presented in a soft folder (A4 size), typed in Times

New Roman, font size 12 and double spaced. Each Section must start on a new page.

The School Based Assessment (SBA) will be submitted in a series of drafts once information has

been collected.

The research project provides an opportunity for candidates to demonstrate that they have a

comprehensive knowledge of applicable theories, concepts and models that they would have

learned during their course of study. The candidates have the chance to apply economic concepts

and principles to solve everyday problems.

The objectives to be attained by the end of the project should be based on the content of one, two

or all three modules of the unit.

 Format

The project should have the following format:

(a) Title page

(b) Acknowledgements

(c) Introduction

(d) Methodology

(e) Report which includes:

(i) Presentation of data

(ii) Analysis of data

(iii) Evaluation

(iv) Recommendations

(f) Appendices

(i) Questionnaire

(ii) Letter to Organisation

(g) Bibliography
 Introduction

The introduction introduces the reader to the topic which is being researched. Secondly, it must

state the aims and objectives the researcher hopes to achieve when completing the project. Aims

are only general statements. To get more specific the candidate should state objectives which

help you achieve the aim. There should be at least two (2) aims and three (3) objectives. Always

begin each objective with the word ‘To’. Last but not least give a brief background of the

business. See sample SBA.

Your objectives should begin with terms such as:

 To determine
 To evaluate
 To what extent
 Methodology

This section discusses the techniques and process the researcher followed in order to collect data

for the research. It includes:

 Discussion of the methodology used in the research (e.g. case study, primary research,

secondary research).
 Outline the research design (e.g., quantitative, qualitative).

 Give details of the type and sample size and who were the participants in your study.

 List and briefly describe all the instruments (e.g., surveys, observations, interviews,

questionnaires) used in your study for data collection and discuss their advantages in using

these instruments.

 Give a brief description of how, when (in what order) and where the instruments were

administered (for example, field, classroom or laboratory procedures) and how the data was

recorded.

 Discuss how you plan to analyse the data (e.g. Using descriptive statics)

 Identify any limitations in the study.

 Report

The report consists of the Presentation of Data, Analysis of Data and Evaluation of Data.

This must be between 2000-2500 words.

Presentation of Data

This section gives details of all the results of your study. . Present the findings/results in tables or

charts where appropriate. The words used in tables, charts and graphs are not counted in the

word limit. The results should be reported with respect to providing evidence for your research

objectives.

Analysis of Data

This section is to tie in the findings with any relationships to economic literature of concepts,

models, theories and laws that relates to your study. In other words you will match what you find

to the literature (You are answering the question are your findings consistent with any economic

literature). The best way to tackle the analysis is to define concepts, state laws or theories and

give features of economics from literatures and then show how the law/concept/theory/feature is

put into practice in the research. Sometimes the candidate might realise that the economic theory

is not reflected in the results of the research.

 Evaluation

This section gives an overall conclusion about the results found in the study. It should also state

if it would have any positive or negative impacts in society.

Recommendations

Any research should identify problems. The researcher should make suggestions as to how any

problems could be solved.

Bibliography

This is a record of all sources cited in the School Based Assessment. The bibliography should

contain at least three sources. Sources should be written in alphabetical order as follows:

For texts

Author(s) last name, Author(s) initials. (Year of publication in brackets). Name of source in

italics. Place of publication: Publisher

For websites

Full website as it appears in the address bar and the date the website was extracted

For online articles/publications

Author(s) last name, Author(s) initials. (Year of publication in brackets). Name of source in

italics. Retrieved date, from website

 MARK SCHEME

MARKING SCHEME FOR INTERNAL ASSESSMENT

Knowledge/Presentation/Methodology (14 marks)

(Includes marks for communicating information in a logical way using correct grammar)

The student has:

1. demonstrated a grasp of the meaning of basic economic facts, concepts and principles;

2. explained familiar economic phenomena in terms of theories, models, laws and

principles;

3. developed a research design that provides a sound and efficient basis for drawing
reasonable conclusions.

Application/Analysis (20 marks)

(Includes marks for communicating information in a logical way using correct grammar)

The student has:

1. used the major economic concepts, principles and procedures in unfamiliar situations,
transformed economic data accurately and appropriately, used common characteristics as
a basis for classification;
2. identified and recognised the component parts of an economic theory or concept and
interpreted the relationships between these parts;

3. inferred, predicted and drawn conclusions using relevant economic data;

4. made relevant and accurate calculations and recognised the limitations of economic data;

5. selected appropriate economic theories – matched, compared and cited appropriate

examples in familiar situations.

Evaluation Synthesis (17 marks)

(Includes marks for communicating information in a logical way using correct grammar)

The student has:

1. combined component parts to form a new meaningful whole, made predictions and
solved problems;

2. made reasoned judgements and recommendations based on the value of ideas and
information.
Communication (9 marks)

Candidates will be awarded 9 marks, for communicating information in a logical way using
correct grammar.

The student has:

1. presented arguments in a clear, concise, reasoned and objective manner using correct
grammar;

2. used presentation aids such as graphs, charts and tables to communicate information in a
logical way;

3. displayed logic and coherence in expressing economic arguments;

4. used proper referencing and citations of source materials. Using the example of the
standard Chicago manual style is recommended.
 SAMPLE SBA 1

Introduction
Wage differentials can be defined as the differences in wage rates between workers in the

same industry or between those with comparable skills in different industries or localities.

Various factors can affect the wages distributed within a company or an industry. Some of the

relevant factors can include; different skill levels, differences in productivity and revenue

creations and employer discrimination.

Differences in wages exist within many industries. For example, the industry that will be

used in this research project is the food service industry. To be more specific, the company M.I.S

Products Limited. M.I.S Products is a food and flavoring manufacturing and packaging company.

The company has been established since 1979 and can be described as a family business. For any

business to function there must be a variety of job titles instilled. In the case of M.I.S the job

titles range depending on the job description. The main purpose of this project is to investigate

the wage rates by the different units of labour within the M.I.S Company.
Aims& Objectives
The aims of this research project are:

 To explain the concept of wage differentials in relation to the labour force within the

company
 To investigate the attributes that contributes to the wage differences of the employees of

M.I.S.

The objectives are:

 To explain the concept of wage differentials

 To identify the factors affecting the differences of wages at M.I.S
 To compare and contrast actual findings from this study and those of other literatures.
Methodology
To critically obtain the data needed for this research project, primary and secondary

sources were used. The primary data was collected by administering questionnaires. The

questionnaires were administered to 20 individuals; these individuals were all the employees of

the company excluding on general worker. A selection from each job title was needed to

differentiate the wages adequately. The advantages of using questionnaires are; they were easy to

administer and it saved time as a large number of questionnaires could be administered at the

same time. The secondary method of collecting data included the use of textbooks and various

online sources. The benefit of this source is the provision of a variety of necessary information.

The data was analyzed using a quantitative approach by the presentation of charts. The charts

were then compared with literatures.

Limitations of Data Collection

The limitations of the use of questionnaires are, the respondent may lie, forget or lack

information and also the respondents left on their own may not be concerned about the

importance of the questions. For the secondary sources, the limitation was the extensive research

conducted because all the information was not easily forthcoming.

Research Design

The first step in executing this research project was the selection of an appropriate topic.

Next, was relating the topic to a named company and aims of the project were devised along with

several objectives. Having prepared, the introduction of the project, a methodology identifying

the sources used to gather information was established. Twenty questionnaires were the

formulated and administered to the employees of M.I.S Limited. Twenty employees answered
the questionnaires, each ranging from different sectors of the company. After the administration

of the questionnaires, the data was analysed and presented into tables and charts. In the analysis

the data from the table and charts was compared with literature relating to the topic. An

evaluation was then made from the analysed data and finally recommendations were made. In

the recommendations, points were made to correct any problems faced by the distribution of

wages in the company.

Presentation of Data

Job Title Sex Age Range Years at Qualifications

company(approximate)
Managing Male 51-55 Over 20 years CXC

Director A-levels

Associate

Degree
Administrative Female 51-55 11-20 CXC

Manager A-levels

Associate

Degree
Sales Supervisor Male 31-35 1-5 CXC

A-level
Production Female 51-55 Over 20 years CXC

Supervisor
Production Female 31-35 1-5 CXC

Worker (1)
Production Female 41-45 1-5 CXC

Worker (2)
Production Female 21-25 1-5 CXC

Worker (3)
Production Female 26-30 1-5 CXC

Worker (4)
Production Female 21-25 1-5 CXC

Worker (5)
Production Female 26-30 1-5 CXC

Worker (6)

Production Female 46-50 1-5 CXC

Worker (7)
Salesman (1) Male 21-25 1-5 CXC
Salesman (2) Female 26-30 6-10 CXC
Salesman (3) Male 26-30 6-10 CXC
Salesman (4) Male 31-35 6-10 CXC
Delivery Man Female 36-40 1-5 CXC

(1)
Delivery Man Male 26-30 1-5 CXC

(2)
Office Admin (1) Female 36-40 6-10 CXC
Office Admin (2) Female 41-45 6-10 CXC
General Worker Female 41-45 6-10 None
Table 1: General information of the employees of M.I.S

Occupational Level Salary Range $/per year

Managing Director 100 000

Administrative Manager 75 000

Sales Supervisor 50 000

Salesman 25 000 – 30 000

Productive Supervisor 25 000

Productive Worker 20 000 – 24 000

Office Administration 24 000 – 25 000

Delivery Man 15 000

General Worker 12 000

Table 2: Occupation level and salary range of employees

Figure 1: Pie chart showing the male to female ratio within the company
Figure 2: Pie chart showing the number of employees who had previous experience before being

hired.

Yes No
Managing Director Productive worker (2)
Administrative Director Productive worker (3)
Sales Supervisor Productive worker (4)
Production Supervisor Productive worker (5)
Production Worker (1) Productive worker (7)
Production Worker (6) Salesman (3)
Salesman (1) General worker
Salesman (4)
Salesman (2)
Office Admin (1)
Office Admin (2)
Delivery Man (1)
Delivery Man (2)
Table 3: Showing which employees have experience

Figure 3: Column chart showing average wages and Age Range

Figure 4: Bar chart showing the period of training for the various job titles.

Figure 5: Bar chart showing occupational level with regard to average wage.
Analysis & Interpretation
Table 1 illustrates the general information of the employees of M.I.S. The table is in an

ascending order from the highest paid – the lowest paid. It is evident that the individuals who are

paid the highest have more distinct qualifications than other employees. For example, the

managing director, administrative manager and sales supervisor have more qualifications than

the other employees of the company, who only have CXC’s. From this, we can say that

qualifications differs the administration of the company with the majority of the employees.

However in term of years on the job, Lipsey & Chrystal (2004) states that generally, the longer

one stays with one firm, the higher the income one earns. This statement is true to extent in the

case of M.I.S products. The highest paid individuals have been with the company for

approximately 11- over 20 years and they have the higher incomes. The exception to this

statement is the sales supervisor who has only been with the company for 1-5 years and gets paid

more than various employees. This occurs because he has more qualifications than employees

who may have been working at the firm longer than he has.

Lipsey & Chrsytal (2004) indicates that incomes vary with the type of job. Cleaners and

casual staff in fast-food restaurants, for example, earn less than electricians and It support staff.

From the information shown in table 2, this example is portrayed. The Managing Director,

Administrative manager, Etc earn a higher income than the general workers, delivery men,

salesman mainly because the latter is seen as less significant as the higher paid jobs. Jobs such as

a general worker, which in this case would be a cleaner, would be categorized a low rated job

because no special skills are needed in executing the job. It would be impossible for lower rated

jobs to equal the same income of a high rate job mainly because of the experience needed and the

qualifications needed.
 Many believe that a major factor of wage differentials is sex and gender. Figure 1 is a pie

chart showing the women to men ratio within the company. The company is made up of 70%

women and 30% men. Even though there are more men and women, the job titles are diverse in

term of gender. Lipsey & Chrystal (2004) states that on average, men earn more than women.

This statement does not technically apply to M.I.S mainly because the earnings is not based on

the gender but on job titles and some women have higher job titles than men. -sided”. This

statement can only apply to the fact the managing director and the highest paid individual is

male. However, most women within the company are paid higher than the males. This occurs

because; most of the women that make up the company are productive workers, whereas most

the males are sales and delivery men. The administration of the company has a variety of both

male and female

Figure 2 shows the number of employees who had experience before being hired for their

current job. Only 30 % of employees had previous experience. The 30% of employees varied

from higher paid – lower paid employees. It can be said that experience is the not a significant

factor in order to strive in this business. However, three of the highest paid employees had

experience before being hired which would help with efficiency in the business as well as the

functioning of the company. Table 3 shows which employees had experience and which did not.

Most employees within the company have had experience in their field of work. However, most

of the inexperienced workers are productive workers. The job descriptions of these workers do

not require much experience because this job mainly requires on the job training.

Figure 3 illustrates average earnings compared with the age range of employees.

According to Lypsy & Chrystal (2004), average earnings tend to rise until a person’s mid-40s

and fall thereafter (though this pattern varies with occupation).This statement is untrue pertaining
to the company being studied. Within M.I.S Products Ltd the average earnings fall between the

age of 46-50 but then rises between the age of 51- 55. This occurs because the highest paid

individuals are the Managing Director and the Administrative Manager who also happened to be

the oldest employees in the company. For instance, if these positions were occupied by younger

individuals the average earnings would rise within that age range.

Following, Figure 4 portrays the time period of training for the various jobs in the

company. From the bar chat, it can be concluded that the more significant the job the more

training it requires. For example, the managing director’s training period is 18 months whilst the

general worker does not have a training period at all. This occurs because the general manager’s

job is more important and more crucial that the general worker. Both jobs are vital for the

company in order to function but harder to execute. For instance, if the general worker makes a

mistake it would minor to company compared to if the managing director was to make a mistake

in executing his job. Any mistakes he makes could be vital to the efficiency of the company.

Finally, Figure 5 examines the occupational level in relation to the average wage. Figure

5 relates to table 2 which shows the range. However figure 5 portrays the average wage for each

job title. It is clear that income varies with the type of job. This relates to the theory by Lipsey &

Chrystal used to explain table 2.

Evaluation
Based on the definition of wage differentials and after analyzing the presented data from

the charts and table it can be said that evidence of wage gaps do exist within the organization.

The empirical literature highlighted many factors that cause wage differentials; however, in this

research, the predominant factors that were found M.I.S Products Limited were; the importance

of different job titles in comparison to others, the skills required and qualifications

Qualifications are not a major factor for wage differentials in this case but it did have

some kind of effect on how individuals are paid. In order to have conclusive idea if factors is a

major role a research across industries will have to be undertaken. Despite this limitation, based

on M.I.S Products Limited, the most qualified individuals are the highest paid, whereas the

individuals who are not qualified or have just basic qualifications are among the averaged paid

and the lowest paid. The administration or the management of the company also has had their job

titles in the companies for the longest. This means they also have years of experience as well as

qualifications. Also within the company, some individuals of with the same job description may

be paid higher. For instance, if some production workers get pay more than others who does the

same work, this may be due to having more CXCs (since all have CXCs) or the amount of yrs

working in the organization

Wage differentials may arise in this company because of the different skills required.

Every job title needs specific skills because of the variety of jobs needed. Jobs that require

special skills, greater responsibility or a long period of training are paid higher. This occurs

because of the demand of skill figured in contrast to the number of employees carrying out the

tasks.
 Finally, all jobs within the company are deemed as important but some jobs are seen as

more significant than others. For example the managing director has to have to know the job

requirements of each job title as he oversees everything and had to make sure everything is

functioning right. Sometimes he may even have to step in for other workers if they are sick or is

not efficient enough. This may also be the case for the administrative manager as well. However,

most of the employees only have to worry about what their job title requires and executes their

tasks as adequately as possible. This is the most essential cause of wage the wage differences, the

importance of particular job descriptions.

Recommendations
In closing, from analyzing and evaluating the information that was gathered from this

study I would make the following recommendations to M.I.S Products Limited:

 In terms of experience, employees who had previous experience before being hired

should have higher income than other in their sector that has only learnt about their

requirements from the training periods.

 Office Administration workers should be able to get a promotion to higher paid jobs, if

they work efficiently and learn the different tasks and requirements needed to be part of

the administration
 Efficient workers should be rewarded non-monetary incentives or end of year bonuses for

their hard work during the year

 If the company is gaining substantial profits its possible they can invest in human capital

which would affect the efficiency of the company positively

Bibliography
Appendix
My name is ………….. and I am an Economics student at the St. Michael School. I am seeking
to gather information which would assist me in my Economics research assignment. The topic
of my assignment is Wage Differentials, which basically describes the factors that affect how
wages are distributed in a company. The information collected in this questionnaire will be
confidential. Please tick the box where necessary or fill out the questions. Please answer all
questions truthfully.
Gender: Male [ ]
Female [ ]

Age: 21-25 [ ]
26-30 [ ]
31-35 [ ]
36-40 [ ]
41-45 [ ]
46-50 [ ]
51-55 [ ]
Over 55 [ ]

1. What is your job description within the company?

2. Does your job require a training period?

Yes [ ] No [ ]

3. If yes, how long was the period of training for this job?
2 months [ ]
4 months [ ]
6 month [ ]
1 year or more [ ]
4. Did you have any experience in the particular area before you were hired?

Yes [ ] No [ ]

5. What are your highest qualifications?

Cxc [ ] Associate Degree [ ] Diploma [ ] A-level [ ] Bachelor’s Degree [ ] Other [ ]

/(If other please specify)

6. What skills are used in performing you job?

7. How long have you been working at the company?

Less than 1 year [ ] 1-5 years [ ] 6-10 years [ ] 11-20 years [ ] Over 20 years [ ]

8. State your approximate wage range? (Per annum)

12 000 [ ] 15000[ ] 30 000[ ] 50 000[ ] 100 0000 [ ]

9. How are you paid?

Weekly [ ]

Ever two weeks [ ]

Monthly [ ]

10. Are they a lot of competition for your current position?

Yes [ ] No [ ]

11. For your job descriptions, are there limited positions available in the company?

Yes [ ] No [ ]

12. Are your wages comparable with workers in similar positions in competing businesses?

Yes [ ] No [ ]

14. Is there any risk associated with your job?

Yes [ ] No [ ]

15. Are there any extra allowances associated with the risk on the job?

Yes [ ] No [ ]

16. Are you rewarded any other non monetary incentives while working?
Yes [ ] No [ ]
17. Are you part of a trade union?

Yes [ ] No [ ]