Question
Assume that you are 18 years old and deciding whether to go to university or start working. If you work, you will earn a constant
Assume that you are 18 years old and deciding whether to go to university or start working. If you work, you will earn a constant wage WHSthroughout your career. If you study, you pay tuition for four years and then earn a constant wage WUNI.
a. Show the condition under which you will choose to study.
b. Explain how changes in tuition, interest rate, and wage differential (WUNI-WHS) would
affect your decision.
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Macroeconomics Theories and Policies
Authors: Richard T. Froyen
10th edition
013283152X, 978-0132831529
