LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Question
Chapter 6, Problem 5P
a)
To determine
The basic self-selection issue involved in returns to education.
b)
To determine
The contradictions of self-selecting theory.
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a. Describe the basic self-selection issue involved whenever discussing the returns to education. b. Does the fact that some high school or college dropouts go on to earn vast amounts of money (e.g., Bill Gates dropped out of Harvard without ever graduating) contradict the self-selection story? c. Most government-provided job training programs are optional to the worker. Describe how the self-selection issue might be used to call into question empirical results suggesting there are large economic benefits to be gained by requiring all workers to receive government-provided job training.
What factors do economists suppose influence the amount of education people choose to obtain? What are some events that could influence the decision in this framework?
How does the microeconomic theory of fertility relate to the theory of consumer choice? Do you think that economic incentives and disincentives influence family size decisions? Explain your answer, giving some specific examples of such incentives and disincentives.
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- 3 Imagine that the wage-schooling locus is given by w(s)=s^(1/3). What will be the optimal level of education for an individual to take if next period’s earnings in any given time are worth 95% of current earnings for that individual? ---- HINT: the answer is s=20/57. I need step by step solutionarrow_forwardAll of the below statements reflect the views regarding "human capital" expressed in chapter 6 of the book Naked Economics, EXCEPT for this one. Please select the statement that DOES NOT reflect what Wheelan has written in this chapter. Group of answer choices Human capital is much more than earning more money. It makes us better parents, more informed voters, more appreciative of art and culture.... Technology displaces workers in the short run but does not lead to mass unemployment in the long run. Improvement in human capital and technology is a painless process with no immediate or short-term negative effects upon any person in that economy. Studies indicate that in low-income countries each additional year of schooling reduces the probability of infant mortality by 5-10%.arrow_forwardHow does a college education increase ones human capitalarrow_forward
- Which of the following theories holds that multiple leadership variables determine the probability that leadership will occur, including the qualities of a leader, the characteristics of followers, and the nature of a situation? a. Leadership trait theory b. Implicit leadership theory c. Leadership behavior theory d. Leadership contingency theoryarrow_forward"Do Men and Women Earn the Same Amount?" Please give a reason behind your answer.arrow_forwardHow does the learning curve positively affect a person in their college studies. Does this achieve diminishing returns on experience?arrow_forward
- Refer to the following diagram for questions %! 1 E₁ D₁ E₂ S D2 Education If D₁ is this individual's investment demand curve, then the optimal amount of education a) is E₁ from society's standpoint. b) is E₂ from society's standpoint. c) is E₁ from this individual's standpoint. d) cannot be determined without further information. Compared to D₁, a person whose demand curve is given by D₂ will likely obtain a) more education and receive higher earnings. b) more education and receive lower earnings. c) less education and receive higher earnings. d) less education and receive lower earnings.arrow_forwardWhy are the poorest members of society the greatest beneficiaries in the Difference principle of John Rawls?arrow_forwardHow do you think the impact of technology in economics is changing the choices for future careers? Evaluate the impact of technology in your own future career choice.arrow_forward
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