Let mvpi. be the marginal value product for worker i, which is the price of a firm’s good multiplied

Question:

Let mvpi. be the marginal value product for worker i, which is the price of a firm’s good multiplied by the marginal product of the worker. Assume that

log(mvpi) = β0 + β1xa + … + βkXik + ui

wagei = max(mvpi,,minwagei),

where the explanatory variables include education, experience, and so on, and minwagei is the minimum wage relevant for person i. Write log(wagei) in terms of log(mvpi) and log(m inwagei).

Answer:

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