Studies of the hours of work of older men have found that the substitution effec
ID: 1172925 • Letter: S
Question
Studies of the hours of work of older men have found that the substitution effect dominates the income effect. This suggests that, other things the same, that an increase in non-work expenses will cause older men to work shorter hours. that an increase in the tax rate on income will cause older men to work longer hours. show that tax changes have no effect on their labor supply. that older men will retire earlier in those careers where wages fall more as they get older. Studies of the hours of work of older men have found that the substitution effect dominates the income effect. This suggests that, other things the same, that an increase in non-work expenses will cause older men to work shorter hours. that an increase in the tax rate on income will cause older men to work longer hours. show that tax changes have no effect on their labor supply. that older men will retire earlier in those careers where wages fall more as they get older. that an increase in non-work expenses will cause older men to work shorter hours. that an increase in the tax rate on income will cause older men to work longer hours. show that tax changes have no effect on their labor supply. that older men will retire earlier in those careers where wages fall more as they get older. that an increase in non-work expenses will cause older men to work shorter hours.Explanation / Answer
that older men will retire earlier in those careers where wages fall more as they get older.