Assignment: Brief Questions – ECON3504 and ECON7070 Below is a set of questions, selected from the topics covered in the lectures. Please answer one of these questions and return by Friday 15 May. The...






Assignment: Brief Questions – ECON3504 and ECON7070 Below is a set of questions, selected from the topics covered in the lectures. Please answer one of these questions and return by Friday 15 May. The answers must be short: approx. one page, max 400 words in WORD format. We will endeavor to return them to you with feedback within a week. The answers will be marked and will carry a weight of 10% of the total mark for the course. 1/ Participation-age profiles of workers in paid employment differ substantially by the type of their highest attained qualification. What is driving these differences? 2/ Define the concept of asymmetric information, which is often argued to be an underpinning cause of friction in the education and labour markets. Explain why this argument is made and give a real life example of this type of labour market frictions and their implications. 3/ Describe the concepts of discount rates and the present value of a future stream of outcomes and explain how we use them to study education decisions. What is the use of the market interest rate in this context? 4/ Assuming positive costs of job search, describe how each unemployed job seeker will choose their own Reservation Wage and why the chosen level of Reservation Wage will always be lower than what the job seeker believes to be the highest wage that potential employers would be willing to offer to them. 5/ Define overeducation and overskilling mismatch in the workplace. What are their prime consequences, from the point of view of the overskilled or overeducated worker? Why should labour market policy be concerned? 6/ Using income and substitution effects, show the condition s under which a labour supply curve may be backward bending (use graphs). 7/ How can we reconcile the model of labour supply presented in the lectures and the existence of an “additional worker effect”? You may use graphs to illustrate your answer. 8/ Using insights from the models of labour supply presented in the lecture, give arguments as to why empirical studies find that the wage elasticity of married women is larger than that of males. Kostas and Stephane (4 May 2020) A SSIGNMENT : B RIEF Q UESTIONS – ECON3504 AND ECON7070 Below is a set of questions, selected from the topics covered in the lectures . Please answer one of these que stion s and return by Friday 15 May. The answers mus t be short : approx. one page , max 400 words in WORD format . We will endeavor to return them to you with feedback within a week . The answers will be marked and will carry a weight of 10% of the total mark for the course. 1/ P articipation - age profiles of workers in paid employment differ substantially by the type of their highest attained quali fication. What is driving these differences? 2/ Define the concept of asymmetric information, which is often argued to be an underpinning cause of friction in the education and labour markets. Explain why this argument is made and give a real life example of this type o f labour market frictions and their implications. 3/ Describe the concepts of discount rates and the present value of a future stream of outcomes and explain how we use them to study education decisions. What is the use of the market interes t rate in this context? 4/ Assuming positive costs of job search, describe how each unemployed job seeker will choose their own Reservation Wage and why the chosen level of Reservation Wage will always be lower than what the job seeker believes to be the highest wage that potential employers would be willing to offer to them. 5/ Define overeducation and overskilling mismatch in the workplace . What are their prime consequences, from the point of view of the overskilled or overeducated worker? Why should labour market policy be concerned? 6/ Using income and substitution effects, show the condition s under which a labour supply curve may be backward bending (use graphs). 7/ How can we reconcile the model of labour supply presented in the lectures and the existence of an “additional worker effect”? You may use graphs to illustrate your answer. 8/ Using insights from the models of labour supply presented in the lecture, give arguments as to why empirical studies find that the wage elasticity of married women is larger than that of males. Kostas and Stephane (4 May 2020) ASSIGNMENT: BRIEF QUESTIONS – ECON3504 AND ECON7070 Below is a set of questions, selected from the topics covered in the lectures. Please answer one of these questions and return by Friday 15 May. The answers must be short: approx. one page, max 400 words in WORD format. We will endeavor to return them to you with feedback within a week. The answers will be marked and will carry a weight of 10% of the total mark for the course. 1/ Participation-age profiles of workers in paid employment differ substantially by the type of their highest attained qualification. What is driving these differences? 2/ Define the concept of asymmetric information, which is often argued to be an underpinning cause of friction in the education and labour markets. Explain why this argument is made and give a real life example of this type of labour market frictions and their implications. 3/ Describe the concepts of discount rates and the present value of a future stream of outcomes and explain how we use them to study education decisions. What is the use of the market interest rate in this context? 4/ Assuming positive costs of job search, describe how each unemployed job seeker will choose their own Reservation Wage and why the chosen level of Reservation Wage will always be lower than what the job seeker believes to be the highest wage that potential employers would be willing to offer to them. 5/ Define overeducation and overskilling mismatch in the workplace. What are their prime consequences, from the point of view of the overskilled or overeducated worker? Why should labour market policy be concerned? 6/ Using income and substitution effects, show the condition s under which a labour supply curve may be backward bending (use graphs). 7/ How can we reconcile the model of labour supply presented in the lectures and the existence of an “additional worker effect”? You may use graphs to illustrate your answer. 8/ Using insights from the models of labour supply presented in the lecture, give arguments as to why empirical studies find that the wage elasticity of married women is larger than that of males. Kostas and Stephane (4 May 2020)
Jun 05, 2021
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