LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Question
Chapter 7, Problem 13P
a)
To determine
The country with more positively skewed income distribution.
b)
To determine
The country which develop faster.
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Using the diagram above, which of the following is true?
a. In country S the poorest 30 percent of the population receive 13 percent of the available income in country S.
b. In country T the richest 10 percent of the population receive 23 percent of the available income in country T.
c. In country S the richest 10 percent of the population receive 55 percent of the available income in country S.
d. Country S has a more equal distribution of income than does country T.
e. None of the above is true.
How do factor endowments affect personal income? Examine different provisions employed by the government in dealing with inequality in the distribution of income.
Suppose Country Alpha receives migrants from country Beta and these migrants are positively selected.
If we believe in the Roy model, do you expect country Alpha or country Beta to have a higher income inequality?
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- Case Study: Inequality, Poverty and WealthA study reported in 2001 discovered that relatively poor people give more generously to charitythan those with greater wealth. The project, entitled “The Widow’s Might: How CharitiesDepend on the Poor”, was conducted by Beth Egan of the Social Market Foundation, whoexamined the contributions of over 1000 individuals to ten British charities. It was found thatalthough richer people gave more money in absolute terms, this comprised a smallerproportion of their overall income than was the case for the poor: in other words, the lower aperson’s income, the more of their earnings they donated to charity. For example, those withan annual income of under £5000 gave away an average of 4.5% in donations, whereas forthose with salaries of over £40,000, the figure was only 2%. The journalist Lucy Ward suggeststhat this challenges the assumption most of us hold that charities redistribute income from therich to the poor: instead, it would seem that…arrow_forwardAnswer the given question with a proper explanation and step-by-step solution. Suppose the US adopts a form of universal basic income program in which each household is guaranteed to have at least $3,000 in monthly income. For example, if a household’s average monthly income falls below $3,000 in a given quarter, then the difference is made up with federal direct payments. How would this program affect workers’ decisions to participate in the labor force? How would this program impact income equality in the US?arrow_forwardWhy is social class a better indicator than income in assessing a person's possible product Purchasearrow_forward
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