econ151a_%20ps8_Problem%20Set%208

econ151a_%20ps8_Problem%20Set%208 - Problem Set 8 Economics...

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Problem Set 8 Economics 151a, Winter 2010 Due 3/11/10, 12:10 pm 1. In this problem, you will recreate an estimate (following the method described in the Baicker & Levy paper) of the # of individuals likely to be affected and become unemployed in mandated health insurance were required in the US, in the presence of a minimum wage, currently set at $7.25. Use the following information: Total full-time private sector workers 108 million Fraction of full time private sector workers who are uninsured 17% Average cost of health insurance premium (per hour worked) $4.80 Average increase in compensation for uninsured “at risk” workers 45% Fraction of uninsured full-time workers with wages in range: $7.25-$8.25 33% $8.26-9.25 11% $9.26-10.25 6% $10.26-11.25 5% $11.25 & higher 45% Elasticity of employment with respect to changes in the minimum wage -.07 Assume that all full time private sector firms are required to provide benefits and pay 85% of the benefit premium. a.
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This note was uploaded on 02/14/2011 for the course ECON 151A taught by Professor Miller during the Spring '06 term at UC Davis.

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econ151a_%20ps8_Problem%20Set%208 - Problem Set 8 Economics...

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