Labor economics

10. Many believe that wage inequality in the U.S. will generate shifts in labor markets such that the gap between the most highly skilled in the population and the least skilled will begin to fall in the near future. Explain the theoretical reasons for the claim.

Labor economics

4. The following is the regression output for the following equation, which was estimated for a large sample of people: log(wage) = α + β1Schooling + β2Age + β3Female + β4Non-white Variable Coefficient estimate (β-hat) Standard error Schooling (years) .134 .024 Age (years) 0.009 0.002 Female -0.021 0.001 Non-white -0.014 0.003 (a) Calculate the t-statistics and discuss which variables are statistically significant. (b) What do the estimates imply is the percent wage increase associated with an additional year of schooling? (c) Why might the estimated effects of some of the variables be overstated?... click for more

Labor economics

9. Suppose the U.S. government is considering changes in economic and social policy to reduce wage inequality. Evaluate whether the following will help: (a) Decrease the benefit level to welfare recipients. (b) Increase the benefit level paid to welfare recipients. (c) Provide wage subsidies to firms that hire the less-advantaged. (d) Initiate a federal training program the raises the skills of poor individuals. (e) Pass a law mandating that all workers must be paid a "living wage," which means that all wages must be sufficient to support a family of four financially.

Labor economics

If there was a mandate that firms had to pay all workers health insurance, regardless of their time with the company, what would happen to general and specific training in labor markets?

Labor economics

2. Andre's wage-schooling locus can be described by the following table Years of Schooling Annual Earnings 11 22,000 12 30,000 13 35,000 14 38,000 15 40,000 16 41,000 17 41,500 18 41,700 (a) Depict the wage-schooling locus on a graph. (b) Derive the marginal rate of return to schooling curve. Depict on a graph as completely as possible. (c) Would this person finish the 12th grade if their disc... click for more