About this document
Economic Models: Labor Supply & Wage Analysis by RufusRandolf is a document available to read on EtoBox.
1) The document discusses an economy with labor supply and demand functions. It finds the equilibrium level of employment and wage for different lump-sum tax rates (T=35, T=0) and a minimum wage of $7. 2) It then considers a production function with capital and labor as inputs, finding equilibrium for tax rates of 0% and 3/5. 3) Minimum wages above the market clearing wage reduce employment and total worker income.
- Author
- RufusRandolf
- Language
- EN