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Suppose all 100,000 workers in a certain labor market are of either high quality or low quality. Potential employers value a high-quality worker at $75,000
Suppose all 100,000 workers in a certain labor market are of either high quality or low quality. Potential employers value a high-quality worker at $75,000 per year and a low- quality worker at $50,000 per year. Let t represent the share of the work force that is of high quality. High-quality workers are willing to supply their labor for $65,000 per year, and low- quality workers are willing to supply their labor for $40,000 per year
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