Homework 2

Homework 2 - U0 WorkersU0Economics 375 WageU0 Fall 2010...

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U 0 U 0 U 0 Workers Wage Economics 375 Fall 2010 Economics of Poverty and Discrimination Prof. Todd Homework 2 Name Collaborators? 1) The City of Gotham is considering 3 different policies to provide cash support for low-income workers. Here are the 3 policies: Policy A Gives everyone with low income a $15,000 per year credit whether that person works or not. Has a benefit reduction rate of $1.00 (for every dollar earned, the credit is reduced by $1.00). The credit is phased out when earnings are equal to $15,000. Policy B Gives everyone with low income a $10,000 per year credit whether that person works or not. Has a benefit reduction rate of $0.40. The credit is phased out when earnings are equal to $25,000. Policy C Gives a $0.50 credit for every $1 earned up to $16,000. The maximum credit of $8,000 is received for earnings between $16,000 and $20,000. For earnings in excess of $20,000, the credit is reduced by $0.50 for every $1 earned.
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Homework 2 - U0 WorkersU0Economics 375 WageU0 Fall 2010...

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