Hello. This is Labor of Economics. Q3) Suppose that State X passes a new piece of...

Hello. This is Labor of Economics. Q3) Suppose that State X passes a new piece of legislation that requires all employers to offer paid family leave to workers who have children or parents who need their care for an extended period. Under this new law, businesses are required to hold a job for a worker who goes on paid leave for up to six weeks, When on leave, workers receive 55% of their normal (non-overtime) pay. What are the likely labor market responses from the demand (employer) side of the market? Include in your analysis a consideration of factors that would affect the size of these responses

Expert Solution

The demand side (employer) of the labor market will not support this legislation.

This is because it is a lose-lose situation for the employer. The employer will not only have to pay the worker who is going on leave, but also keep his seat reserved for upto 6 weeks.

This means the employer will lose on its work and also be paying salary to the worker not on work.

Thus, from both ends, the employer will be at loss and would not support the legislation.

Rahul Sunny answered 2 years ago

Hello. This is Labor of Economics. A December 2007 issue of The Economist contained the following...

Hello. This is Labor of Economics. A December 2007 issue of The Economist contained the following quote in an article about Germany: " The goverment has just chopped the payroll tax that finances unemployment insurance , which should encourage employment. " Comment on this statement on this statement, using economic theory

The number of knots in a piece of lumber is a random variable, X. Suppose that...

The number of knots in a piece of lumber is a random variable, X. Suppose that X has a Poisson distribution with E(X) = 4. (a) If four independent pieces of lumber are examined, what is the probability that there is exactly one lumber has no knots? (b) If we consider 100 pieces of lumber, write down the exact expression for the probability that the total number of knots is at least 450? (c) Find a normal approximation to the...

31. Suppose a company is considering buying a new copier. The new machine is less labor...

31. Suppose a company is considering buying a new copier. The new machine is less labor intensive, and would save somewhat on the wage bill. A clerical assistant, working 10 hours a week (for 50 weeks a year), would not be needed any longer. This assistant, including all benefits and other compensation costs, costs $20 an hour. A. What is the annual wage savings? B. Suppose that the machine would last for 5 years. It requires a maintenance agreement, which...

Suppose that the US produces two goods, X and Y, with capital and labor. The US...

Suppose that the US produces two goods, X and Y, with capital and labor. The US is relatively abundant in capital, and X is relatively capital-intensive. In the short-run, neither capital nor labor can move between the X and Y industries. In the medium-run, labor is mobile but capital is specific to each industry. In the long run, both capital and labor are mobile. If the US decides to withdraw from its free trade agreements and impose much higher tariffs,...

Suppose the state of new york implemented a new policy giving free college tuition to all...

Suppose the state of new york implemented a new policy giving free college tuition to all students who scored above 1400 on the SAT. NYS has asked you to use the results of this program to measure the effect of a college education on earnings. 1.In general, why is it econometrically challenging to measure the returns to schooling? 2.What method could you use to answer this question? In a few sentences,what is the basic intuition for how the method works?

Suppose you have designed a new thermometer called the X thermometer. On the X scale the...

Suppose you have designed a new thermometer called the X thermometer. On the X scale the boiling point of water is 135 ∘X and the freezing point of water is 11 ∘X. At what temperature on the new X thermometer will the readings on the Fahrenheit and X thermometers be the same? Give answer in X degrees.

Suppose Ireland and Canada produce two goods. Good Y is labor intensive and Good X is...

Suppose Ireland and Canada produce two goods. Good Y is labor intensive and Good X is capital intensive a. Given the above PPFs, which country is relatively labor-abundant? Capital-abundant? Which good will Ireland export? What about Canada? Explain. b. Suppose the countries have identical preferences. Show the no-trade equilibrium and the free-trade equilibrium. Be sure to explain the production and consumption label points for both economies. c. Compare the relative factor prices in the two countries before and after trade,...

Suppose the State of Oregon is successful in establishing a new tax on carbon emissions. Burning...

Suppose the State of Oregon is successful in establishing a new tax on carbon emissions. Burning coal to generate electricity is known to generate substantial carbon emissions, and so the State’s new policy adds a tax on the market for coal-fired electricity. a) Use a supply-and-demand diagram to show what happens to the quantity of coal-fired electricity and the price that consumers pay for coal-fired electricity. b) Wind power is a substitute for coal-fired electricity. Suppose that wind power production...

Suppose that there are two countries; Country 1 and Country 2. Country 1 is capital abundant and country 2 is labor abundant. X is capital intensive and Y is labor intensive.

Suppose that there are two countries; Country 1 and Country 2. Country 1 is capital abundant and country 2 is labor abundant. X is capital intensive and Y is labor intensive. Assume that Country 1 is a large country and country 2 is a small country.Answer the following questions:a) Suppose that Country I's capital stock increases. Show the pregrowth and after growth production and consumption points on a figure. Clearly explain how the production and consumption of commodity X and...

suppose a regression model has two explanatory variables (x and z). If we add a new...

suppose a regression model has two explanatory variables (x and z). If we add a new variable to to the model (m), and this new variable is correlated to x and z, how would we use the new variable m to test the impact of variable x on our dependent variable y when z and m remain the same?

Question