(a) Download the annual employment rate (https://data.oecd.org/emp/employment-rate.

htm) and average wages (https://data.oecd.org/earnwage/average-wages.htm) for any one economy. Plot the data for all available years. Apply the income and substitution effects that you learned from the labor supply decisions in this chapter to explain your findings.

(b) One of the components of the OECD Better Life Index is the work–life balance (http://

www.oecdbetterlifeindex.org/topics/work-life-balance/). Discuss the work–life indicators for the economy you picked for part

(a) and suggest two factors that may affect the labor supply decisions but are excluded from the model.

(c) Download hours worked (https://data.oecd.org/emp/hours-worked.htm) and overlay the trend on the figure in your answer to part (a). Do you think there are any differences between the trend of hours worked and the trend of employment rate? Read the definitions of these two measures carefully and discuss the advantages and disadvantages of using them.