What is the effect of a wage increase from $35/hour to $40/hour on her weekly labor income? Go back to assuming her original hours worked (30 hours each week). Treat this part separately from part a.
What is the effect of a wage increase from $35/hour to $40/hour on her weekly labor income? Go back to assuming her original hours worked (30 hours each week). Treat this part separately from part a.
Chapter12: Labor Markets And Labor Unions
Section: Chapter Questions
Problem 1.3P
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Assume a woman’s non-labor income elasticity is -0.2 and own wage elasticity is
0.4 and she originally works 30 hours per week.
b. What is the effect of a wage increase from $35/hour to $40/hour on her weekly
labor income? Go back to assuming her original hours worked (30 hours each
week). Treat this part separately from part a.
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