Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Chapter 2, Problem 6P
To determine
The link between education and salaries.
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The following is an excerpt from "The Labor Market Effects of Rising Health Insurance Premiums," by Katherine Baicker, Amitabh Chandra.
We estimate the effect of rising health insurance premiums on wages, employment, and the distribution of part‐time and full‐time work using variation in medical malpractice payments driven by the recent “medical malpractice crisis.” We estimate that a 10% increase in health insurance premiums reduces the aggregate probability of being employed by 1.2 percentage points, reduces hours worked by 2.4%, and increases the likelihood that a worker is employed only part time by 1.9 percentage points. For workers covered by employer provided health insurance, this increase in premiums results in an offsetting decrease in wages of 2.3%.
This finding is consistent with the presence of ____.
a. adverse selection
b. community rating
c. risk selection
d. wage pass-through
The following is an excerpt from "The Labor Market Effects of Rising Health Insurance Premiums," by Katherine Baicker, Amitabh Chandra.
We estimate the effect of rising health insurance premiums on wages, employment, and the distribution of part‐time and full‐time work using variation in medical malpractice payments driven by the recent “medical malpractice crisis.” We estimate that a 10% increase in health insurance premiums reduces the aggregate probability of being employed by 1.2 percentage points, reduces hours worked by 2.4%, and increases the likelihood that a worker is employed only part time by 1.9 percentage points. For workers covered by employer provided health insurance, this increase in premiums results in an offsetting decrease in wages of 2.3%.
This finding is consistent with the presence of ____.
What happens to the probability that a particular person works when the wage rises? Does such a wage increase generate an income effect?
Chapter 2 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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