Annual Hours Worked - = a + ß*Hourly Wage Rate+y*Non-Labor Income Per Year where a=4, ß= 2 and y = -2 The average wage rate is $20 and the average hours worked is 1600 hours per y All coefficients are statistically significant. 9. The implied labor supply elasticity is: a. 0 b. 1% c. 1.25 % d. 1.5% 2%
Annual Hours Worked - = a + ß*Hourly Wage Rate+y*Non-Labor Income Per Year where a=4, ß= 2 and y = -2 The average wage rate is $20 and the average hours worked is 1600 hours per y All coefficients are statistically significant. 9. The implied labor supply elasticity is: a. 0 b. 1% c. 1.25 % d. 1.5% 2%
Chapter11: Labor Markets
Section: Chapter Questions
Problem 13SQ
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Transcribed Image Text:Annual Hours Worked = a + ß*Hourly Wage Rate + y*Non-Labor Income Per Year
where a=4, ß= 2 and y = -2 The average wage rate is $20 and the average hours worked is 1600 hours per year.
All coefficients are statistically significant.
9. The implied labor supply elasticity is:
a. 0
b. 1%
c. 1.25%
d. 1.5%
e. 2%
f. 2.5%
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