QUESTION 12Use Dube (2019) Ch 4 to answer the following.The MWE does not allow for an adequate comparison between studies becauseand groupsmayproduce similar estimates for minimum wage elasticities on average.QUESTION 13The "own-wage employment elasticity" (OWE) makes minimum wage studies more comparable and is calculated asOWE = (%A Employment/%A Minimum wage) - (A/%AQUESTION 14The OWE solves the problem of comparability between studies becauseO It can reflect both how generally the minimum wage is binding, as well as the use of a group for whokm the minimum wage is more binding than it is for theaverage population.It standardizes the size of the overall population and the size of the population to which minimum wages applied before the change ip policy.It reflects both how big the increase in minimum wages is as well as how it compares to the wages of the rest of the population QUESTION 9Dube (2019) comprehensively reviewed studies that estimated the impact of minimum wage employment. Answer the next few questions using Chapter 4 ofDube's reportOne way to assess the validity of a counterfactual parallel trend is by testing the effects of the treatment on outcomes unrelated to the treatment.O TrueO FalseQUESTION 10Minimum Wage Employment Elasticity is defined as:- %AThis measures the responsiveness ofto a change inQUESTION 11Use Dube (2019) Ch. 4 to answer the following:The range of estimates for minimum wage employment elasticity (MWE) were derived fromelasticity estimates fromstudies The median MWE was around

Evidence on minimum wage research: impact on incomes and employment

One way to assess the validity of a counterfactual parallel trend is by testing the effects of the treatment on outcomes unrelated to the treatment, O True O False QUESTION 10 Minimum Wage Employment Elasticity is defined as: %A - %A This measures the responsiveness of to a change in QUESTION 11 Use Dube (2019) Ch. 4 to answer the following The range of estimates for minimum wage employment elasticity (MWE) were derived from elasticity estimates from studies The median MWE was around

One way to assess the validity of a counterfactual parallel trend is by testing the effects of the treatment on outcomes unrelated to the treatment, O True O False QUESTION 10 Minimum Wage Employment Elasticity is defined as: %A - %A This measures the responsiveness of to a change in QUESTION 11 Use Dube (2019) Ch. 4 to answer the following The range of estimates for minimum wage employment elasticity (MWE) were derived from elasticity estimates from studies The median MWE was around

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 40P: Assume that the supply of law-skilled worker is fairly elastic, but the employers demand for such...

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Chelsea Izkowski owns a fast food restaurant named Mickey Doodle's Burgers. Sherecently took a course in managerial economics and is eager to apply her knowledge tothe management of her business. She decides to estimate the price elasticity (EP) andincome elasticity (EI) of demand for DoodleBurgers and the cross-price elasticity (EDF) ofdemand for DoodleBurgers with respect to the price of FiddleBurgers, her chiefcompetitor. In order to estimate these elasticities, she collects the information that islisted in the table below, where Q is the quantity of DoodleBurgers sold in a week, PD isthe price of a DoodleBurger during the week, I is per capita annual income, and PF is theprice of a FiddleBurger during the week. Use this information to calculate the arc price,income, and cross-price elasticities of demand for DoodleBurgers.Q 1,000 1,100 983 831PD $1.20 $1.20 $1.20 $1.40I $10,000 $10,000 $11,000 $10,000PF $1.00 $1.10 $1.00 $1.00
Please show all steps, I want to know all the steps involved. Thank you! Calculate the own-wage elasticity of demand for occupations a, b, and c below. ED and W are the original employment and wage. E ' D and W' are the new employment and wage. State whether the demand is elastic, inelastic, or unitary elastic. a. %Δ E D = 5, %Δ W = –10 b . E D = 50, W = 7 E'D = 40, W' = 8 c . E D = 80, W = 8 E' D = 100, W' = 6
QUESTION TWOa) Given labour demand curve LDi = 40 − 5wi + 2wj, and wages labour market I and labour market j are wi = K5 and wj = K3 respectively. At the existing wages in labour market I and j, calculate;i). What is the nature of relationship between labour market i and labour market j.ii) Discuss the relationship between slope and elasticity of labour demand curve.
Assume that the supply of low-skilled workers is fairly elastic, but the employers’ demand for such workers is fairly in elastic.If the policy goal is to expand employmentforlow-skilledworkers,is it better to focus on policy tools to shift the supply of unskilled labor or on tools to shift the demand for unskilled labor?Whatif the policy goal is to raise wages for this group? Explain your answers with supply and demand diagrams.
The manager of a small town grocery store who is in charge of ordering products reads in the newspaper that the unemployment related to the Covid-19pandemic is expected to decrease local incomes by 2596 on average in the next month. He knows that the income elasticity of demand for rice isapproximately -0.5. Given that rice is agood, the manager should stockrice.O A. normal: 109 moreO B. inferior: 12.595 moreO C. inferior: 12.59 lessO D. normal: 12.596 less
When Alan Greenspan (an economist who wouldlater chair the Federal Reserve) ran a consulting firmin the 1960s, he primarily hired female economists. Heonce told the New York Times, “I always valued menand women equally, and I found that because othersdid not, good women economists were cheaper thanmen.” Is Greenspan’s behavior profit-maximizing? Isit admirable or despicable? If more employers werelike Greenspan, what would happen to the wagedifferential between men and women? Why mightother economic consulting firms at the time not havefollowed Greenspan’s business strategy?
Among single non-college-educated women aged 30 – 40, average hours worked per week is 30 and the average wage is £12 per hour. A researcher collects data and finds that when the average wage increases to £15 per hour, average hours worked per week is now 27 hours. a) What is the elasticity of labour supply for this group of workers? Interpret your findings. Can you think of reasons for the sign of the elasticity for this particular group? b) Do you assume the elasticity of married non-college-educated women aged 30 – 40 to be similar? Briefly explain your reasoning.
What is meant by unitary elastic? Explain its theory using an example.
Suppose that Congress passes a law requiringemployers to provide employees some benefit (suchas healthcare) that raises the cost of an employee by$4 per hour.a. What effect does this employer mandate haveon the demand for labor? (In answering this andthe following questions, be quantitative whenyou can.)b. If employees place a value on this benefit exactlyequal to its cost, what effect does this employermandate have on the supply of labor?c. If the wage can freely adjust to balance supply anddemand, how does this law affect the wage andthe level of employment? Are employers better orworse off? Are employees better or worse off?d. Suppose that, before the mandate, the wage in thismarket was $3 above the minimum wage. In thiscase, how does the employer mandate affect thewage, the level of employment, and the level ofunemployment?e. Now suppose that workers do not value themandated benefit at all. How does this alternativeassumption change your answers to parts(b) and (c)?
E1 3. [Employment and Unemployment] Suppose a country has a working-age population of 500people. The demand and supply functions of its labor market are:w=300-0.5L w=60+0.1Lwhere w is the wage, L is the quantity of labor. The labor market has search friction so thatthose that are looking for a job may not immediately find one even when there are openings.Specifically, Assume the number of job matches (i.e. employment) is given by: 0.8L(a) Find the equilibrium wage and the actual number of employed people. Calculate thelabor force participation rate and unemployment rate. (b) The COVID-19 pandemic lowers the labor demand, and the new labor demand becomesw=240-0.5L. Assume that the wage can adjust quickly, find the equilibrium wage and theactual number of employed people during the pandemic. (c) Briefly explain in words, and with a specific example of each, the difference betweenstructural and frictional unemployment.
(a) Solve for the equilibrium wage and employment level.(b) Graph the demand and supply curves.(c) At this equilibrium, what is your welfare/gains from trade?(d) Now, assume a minimum wage has been implemented at $20. How will this impact yourdemand? Supply?(e) How many workers are displaced by this new policy? How much “extra” unemployment occurswith this new policy? Hint: Think about the reservation wage.(f) Graph the new labor demand and supply with this minimum wage.(g) At this equilibrium, what is your new welfare? Are you better off with this change? Explain.
A government passes a family-friendly law that no companies can have evening, nighttime, or weekend hours, so that everyone can be home with their families during these times. Analyze the effect of this law using a demand and supply diagram for the labor market: first assuming that wages are flexible, and then assuming that wages are sticky downward.