LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Chapter 6, Problem 3P
To determine
The discount rate of each woman.
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Mary earns $15 per hour, Paul earns $18 per hour, and Peter earns $22 per hour. Peter has three years of college, Paul has two, and Mary has one. The difference in their choice of years of education is due completely to different discount rates. How much can the available information reveal about each person’s discount rate?
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