1. College premium As a Senior Advisor of the Finance Minister, you have been requested to analyse the the effect of the 2020 pandemic on the labour market. While you were preparing the data, you noticed that between 1970 and 1980 the fraction of college-educated workers increased from about 22% to 30%. The large inflow of college-educated workers into the labour market pushed the college wage premium downward (see Figure 7.8 from the textbook). a) Use a labour supply/demand diagram to explain this fact to the Finance Minister b) After 1980 the college premium starts increasing while the supply of collegeeducated workers increased as well. Can you explain what is happening in the labour market