Discuss the consequences of the kink in budget constraint

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Most individuals do not take a second job (moonlight), even if they can get one-say, as a taxi driver-even though their "basic job" may require them to work only 37 hours a week. Most moonlighting jobs pay less per hour than the worker's basic job. Draw a typical worker's budget constraint. Explain why the budget constraint has a kink at 37 hours of work. Discuss the consequences of the kink in the budget constraint.

Reference no: EM131144269

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