LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Question
Chapter 11, Problem 12P
(a)
To determine
Explain the given statement.
(b)
To determine
Explain the given statement.
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1. Teachers in Los Angeles recently went on strike, asking for higher salaries. They were successful. How would you expect this to change LA schools’ budget constraint, and how might this affect their optimal allocation of funds. In particular, how would you expect an increase in teacher salaries to affect schools’ hiring of teachers. Please use draw a diagram as part of your answer.
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