Suppose that the returns to education are 13.4% per year for the first four years of schooling (grades 1–4), 10.1% per year for the next four years (grades 5–8), and 6.8% per year for education beyond eight years. In a certain country, everyone in the labor force in the year 2000 had 12 years of education. In 1950 everyone in the labor force had 4 years of education. What was the average annual growth in income per worker that was due to the increase in education?
Suppose that the returns to education are 13.4% per year for the first four years of schooling (grades 1–4), 10.1% per year for the next four years (grades 5–8), and 6.8% per year for education beyond eight years. In a certain country, everyone in the labor force in the year 2000 had 12 years of education. In 1950 everyone in the labor force had 4 years of education. What was the average annual growth in income per worker that was due to the increase in education?
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Suppose that the returns to education are 13.4% per year for the first four years of schooling (grades 1–4), 10.1% per year for the next four years (grades 5–8), and 6.8% per year for education beyond eight years. In a certain country, everyone in the labor force in the year 2000 had 12 years of education. In 1950 everyone in the labor force had 4 years of education. What was the average annual growth in income per worker that was due to the increase in education?
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