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Consider worker 1 with non-labour income Y facing a wage offer, w and a utility function defined over consumption and leisure. U (c,l) = lnC
Consider worker 1 with non-labour income Y facing a wage offer, w and a utility function defined over consumption and leisure.
U (c,l) = lnC +4lnl
Compare worker 1 with worker 2 whose utility function is described by U (c,l) = cl
Which worker places a higher value on labour market work?
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