How the present value of future income payment is calculated

Reference no: EM131923418

Problem

1. Discuss how the present value of a future income payment is calculated.

2. Discuss how the wage-schooling locus is determined in the labor market, and why it is upward sloping and concave.

3. Derive the stopping rule for investments in education.

4. Why does the percentage gain in earnings observed when a worker gets one more year of schooling measure the marginal rate of return to education?

Reference no: EM131923418

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