{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Labor Economics HW5

# Labor Economics HW5 - 1 Emmanuel Clayton EC931657 AECO370...

This preview shows pages 1–3. Sign up to view the full content.

1 Emmanuel Clayton EC931657 AECO370 Masters Homework on Compensating Differentials (HW6) 1. Rosie the Riveter has the following utility function over weekly wages, w, and the probability of death due to a fall, p. (i) Draw her indifference curves for U = 100, 200, 300, 400 over the range of p from 0 to 0.2. Utilily Value (U) (c) Wage p = 0 Wage p = 0.1 Wage p = 0.2 100 2000 100 300 500 200 2000 200 400 600 300 2000 300 500 700 400 2000 400 600 800

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

View Full Document
2 (ii) Suppose the probability of death from a fall is zero when she works on a single storey building but it increases by 0.01 for every additional floor of the building she works on. If she can get \$200 per week to work on a (single storey) supermarket, how much would the builder of a 11 storey office block have to pay her? What about a 21 storey sky-scraper? Probability of Death (p) Wage (\$) Floor 0 200 Ground Fl 0.01 202 1 0.02 204 2 0.03 206 3 0.04 208 4 0.05 210 5 0.06 212 6 0.07 214 7 0.08 216 8 0.09 218 9 0.1 220 10 0.11 222 11 0.12 224 12 0.13 226 13 0.14 228 14 0.15 230 15 0.16 232 16 0.17 234 17 0.18 236
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern