A proposal that is attracting increasing attention is a requirement that employers provide their workers with paid sick leave. This problem asks you to analyze the effects of such a policy on wages and employment in normal times. a. How, if at all, would such a policy affect labor demand? (explain using MRP) b. How, if at all, would it affect labor supply? (explain using willingness to work) c. How, if at all, would the policy affect normal employment and the normal real wage (or is it not possible to tell)?
A proposal that is attracting increasing attention is a requirement that employers provide their workers with paid sick leave. This problem asks you to analyze the effects of such a policy on wages and employment in normal times. a. How, if at all, would such a policy affect labor demand? (explain using MRP) b. How, if at all, would it affect labor supply? (explain using willingness to work) c. How, if at all, would the policy affect normal employment and the normal real wage (or is it not possible to tell)?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
A proposal that is attracting increasing attention is a requirement that employers provide their
workers with paid sick leave. This problem asks you to analyze the effects of such a policy on wages and
employment in normal times.
a. How, if at all, would such a policy affect labor demand? (explain using MRP)
b. How, if at all, would it affect labor supply? (explain using willingness to work)
c. How, if at all, would the policy affect normal employment and the normal real wage (or is it
not possible to tell)?
include graphs
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