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.

ECON MICRO
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ISBN:9781337000536
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Chapter12: Labor Markets And Labor Unions
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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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