Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the Table below. Years of Wage Relative Schooling to No Schooling No Schooling 0 1 Partial Primary 4 1.65 Complete Primary 8 2.43 Incomplete

image text in transcribed
Consider the Table below. Years of Wage Relative Schooling to No Schooling No Schooling 0 1 Partial Primary 4 1.65 Complete Primary 8 2.43 Incomplete Secondary 10 2.77 Complete Secondary 12 3.16 Incomplete Higher 14 3.61 Complete Higher 16 4.1 1 a) Suppose that we are comparing two countries, 1' and j, which are similar in every respect except the education of their population. Given the data in the Table above, calculate the ratio of output per worker in steady-state in the two countries if all the adults in country i have 16 years of schooling and all the adults in country j have half of the completed schooling of country i. b) What happens to the ratio in a) if country j '5 adults all complete 14 years of schooling. 0) Interpret the ratio in part b) above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sociology Of Economic Innovation

Authors: Francesco Ramella

1st Edition

1317621344, 9781317621348

More Books

Students also viewed these Economics questions

Question

Explain strategies for collecting research for each objective.

Answered: 1 week ago

Question

6. How can hidden knowledge guide our actions?

Answered: 1 week ago