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).