Calculate the share of wages that represents payments

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In the United States, the average hourly earnings of production workers in 2007 were $17.45 per hour. The national minimum wage was $5.85 per hour. Assume that the minimum wage represents what a worker receives for "raw labor". Using these data, calculate the share of wages that represents payments to human capital and the share that represents payments to raw labor.

Reference no: EM131112693

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