How would hours change in response to overtime pay in a case

Assignment Help Econometrics

Reference no: EM13199291

Labor Supply I:

a. Consider a worker choosing how many hours to work. Suppose that nonlabor income increases. What will happen to hours of work? Why? Suppose now that wages increase. What will happen to hours of work why?

b. Let's evaluate the expected impact of the introduction of overtime pay on hours of work. Consider three cases. First suppose that before the overtime pay is started the optimal choice of hours is 5 hours per week. How would hours change in response to overtime pay in this case?

Second, suppose that before the overtime pay is started the optimal choice of hours is 35 hours per week. How would hours change in response to overtime pay in this case?

Third, suppose that before the overtime pay is started the optimal choice of hours is 45 hours per week. How would hours change in response to overtime pay in this case?

c. Now consider the choice to work or not. Suppose that nonlabor income increases. What will happen to the reservation wage? What about the probability of working? Suppose that wages increase. What will happen to the reservation wage? What about the probability of working?

Reference no: EM13199291

Questions Cloud

Has the labor force participation rate gone up or down : Visit the Bureau of Labor Statistics and click on the links for state employment and unemployment. Look at your home state and describe what changes have taken place in the workforce and unemployment rate.

Two methods can a less developed country use for : What two methods can a less developed country use to finance its economic development. internal financing & debt rescheduling or else.

State confesses to the crime in a conversation : Jim is indicted. Before he is arrested, he confesses to the crime in a conversation with Kelly, the arresting officer. Kelly then arrests Jim and advises him of the right to counsel.

Explain the use of all types of punctuation : Your essay should include an introduction, a body paragraph or two, and a conclusion. Showcase the use of all types of punctuation. Be sure to provide APA reference citations for any research used in this assignment.

How would hours change in response to overtime pay in a case : Let's evaluate the expected impact of the introduction of overtime pay on hours of work. Consider three cases. First suppose that before the overtime pay is started the optimal choice of hours is 5 hours per week.

Find the length of the shortest ladder : A fence a feet high is b feet from a tall burning building. Find the length of the shortest ladder that will reach from the ground across the top of the fence to the building.

What is the return on your investment : Suppose that one year from now the bond still yields 3%. If you buy the bond today and sell it after one year, what is the return on your investment over the 12 month period?

Explain term some courage in life : The main point of my response is that you have to take chances no matter what it is. You have to have some courage in your life, and just to be brave.

Find dc to the nearest tenth : In right triangle BCD, BD=12 m

User Account

All Pages