Question 1: (20) Access the latest Labour Force Survey data from Statistics Canada website and calculate Labour force participation rate, employment rate, unemployment rate for all, men and women separately. Show your calculation and mention the time period of the data you used. Represent your result in a table. Question 2: (30) Assume the following regression model: Lw = -10Y+15Y - 0.6Uh Where L is the labour force participation rate of women (measured in percentage, is the average income of spouse and women (measured in Lw 35), Y and Y thousand dollars, Y uh = 6. = 10 and Y = 6), and u is the spouse unemployment rate, Page 1 of 2 ECON 481: Labour Economics: Assignment-1 Deadline: May 17, 2024 Part (a): What is the expected effect of a decrease of $10000 in the income of the spouse on the participation rate of women? Part (b): What is the expected effect of an increase of $5000 in the income of women them- selves on the participation rate of women? Part (c): Break the latter down into its separate income and substitution effects Part (d): Given the magnitude of the latter two effects, what would be the impact on female participation of an equal pay policy that increased the expected wages of females by $1000 while at the same time decreasing the expected earnings of their spouses by $1000? Part (e): Calculate the pure income and the gross or uncompensated wage elasticities of par- ticipation, evaluated at the means. Part (f): Does this equation shed any light on why the labor force participation of married women has increased over time, even though their non-labor wage has also increased? Question 3: (25) Let's assume that woman has a wage rate of $15 per hour and that her spouse's em- ployer has forced them to take a pay cut of $5, from $25 per hour to $20 per hour, but allowed to continue working at 40 hours per week. Using income-leisure frame- work, Consider two approaches: Part (a): At first, take the spouses hours given, and analyze the household choice over con- sumption and woman's leisure. Part (b): Second, focus on the choice of spouse versus woman's labour supply, allowing both to adjust their hours, and putting the consumption decision in the background. Part (c): Compare the pros and cons of the two approaches. In particular, use the two ap- marsbour supply of unemployment compen- proaches to compare the impact on the 2 of 2 sation for the spouse equal to $200 per v ||

Question 1: (20) Access the latest Labour Force Survey data from Statistics Canada website and calculate Labour force participation rate, employment rate, unemployment rate for all, men and women separately. Show your calculation and mention the time period of the data you used. Represent your result in a table. Question 2: (30) Assume the following regression model: Lw = -10Y+15Y - 0.6Uh Where L is the labour force participation rate of women (measured in percentage, is the average income of spouse and women (measured in Lw 35), Y and Y thousand dollars, Y uh = 6. = 10 and Y = 6), and u is the spouse unemployment rate, Page 1 of 2 ECON 481: Labour Economics: Assignment-1 Deadline: May 17, 2024 Part (a): What is the expected effect of a decrease of $10000 in the income of the spouse on the participation rate of women? Part (b): What is the expected effect of an increase of $5000 in the income of women them- selves on the participation rate of women? Part (c): Break the latter down into its separate income and substitution effects Part (d): Given the magnitude of the latter two effects, what would be the impact on female participation of an equal pay policy that increased the expected wages of females by $1000 while at the same time decreasing the expected earnings of their spouses by $1000? Part (e): Calculate the pure income and the gross or uncompensated wage elasticities of par- ticipation, evaluated at the means. Part (f): Does this equation shed any light on why the labor force participation of married women has increased over time, even though their non-labor wage has also increased? Question 3: (25) Let's assume that woman has a wage rate of $15 per hour and that her spouse's em- ployer has forced them to take a pay cut of $5, from $25 per hour to $20 per hour, but allowed to continue working at 40 hours per week. Using income-leisure frame- work, Consider two approaches: Part (a): At first, take the spouses hours given, and analyze the household choice over con- sumption and woman's leisure. Part (b): Second, focus on the choice of spouse versus woman's labour supply, allowing both to adjust their hours, and putting the consumption decision in the background. Part (c): Compare the pros and cons of the two approaches. In particular, use the two ap- marsbour supply of unemployment compen- proaches to compare the impact on the 2 of 2 sation for the spouse equal to $200 per v ||

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 8E

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