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Please refer to activity F and G: Activity F Job market, pooling Suppose worker's marginal productivities are given by the table below: High ability (20%)
Please refer to activity F and G:
Activity F Job market, pooling Suppose worker's marginal productivities are given by the table below: High ability (20%) Low ability (80%) Marginal product of labour ti0,000 20,000 Assume rms cannot observe that. How much is a rm willing to pay for someone without a degree? And with a degree? If a degree costs $15000, is it an equilibrium that no one gets the degree? Activity G Job market, separating Now assume only high ability people get the degree? How much is a firm willing to pay for someone without a degree? And with a degree? Ifa degree costs $15000, is it an equilibrium that smart people get a degreeStep by Step Solution
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