{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Lecture 9 - Lecture Lecture9 LaborSupplyII Roadmap Roadmap...

Info icon This preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Lecture 9 Labor Supply II
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Roadmap Income and Substitution Effects Examples k d b di S l Backward bending Supply curve The decision to work
Image of page 2
Income Effect Effect of an increase in income (or wealth) holding the wage constant. Income Effect = | 0 H W Y • On the margin, when the wage increases, there is an income effect because of all previous hours worked.
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon