Y7

Suppose there is a perfectly competitive labor market where workers' salary depends only on the number of years of completed education: Schooling Salary 11 years 20,000 12 years 25,000 13 years 29,000 14 years 32,000 15 years 34,000 c. Suppose education can only be attained in whole numbers (i.e., you can get 12 or 13 years of education, but it's impossible to have 12.5 years of education). How many years of education will an individual with a discount rate of 10% get? Explain your answer.