Consider a worker, Phil, whose life-cycle wage paths is upward sloping (i.e., ho
ID: 1142038 • Letter: C
Question
Consider a worker, Phil, whose life-cycle wage paths is upward sloping (i.e., hourly wage rate rises with age). Another worker, Bill, has the same wage rate as Phil's at every age, except at age 31, when Bill has a significantly higher wage. Compare the life-cycle path of hours of work between these two workers.
3. Consider a worker. Phil, whose life cycle wa e na hsis betacen these rwo workers. e rwo workers, ward sl ng i e ur v wage rate r ses with age). Another wo er, Bil nas he same wa e rate as Phil's at every age, except at age 3 1 when Bill has a significant v higher wage. Campare the life cvele path at hours o work . when Bill has a significandly higher wage.CampExplanation / Answer
Since both the workers have same life cycle wage paths that is upward sloping and it means wage will be increased with the increasing age, both the workers will have same life cycle path of hours of work untill the age of 31. Bill will earn a little more than Phil by working a few more hours than Phil after the age of 31.