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Unformatted text preview: y be 10000 y for H workers, and 15000 y for L workers. (a) Describe the wages the workers will receive if their ability is known to the employers. (b) Suppose that the ability is not known to the employers, but can be signalled through education. Describe all the separating equilibria, and compare them in terms of welfare for both types of workers. (c) Give an example of a pooling equilibrium....
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- Spring '09