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Business, 10.10.2019 02:20 lifewkeya

Suppose coordination among workers dictates that all workers employed within the same firm work the same number of hours. assume all workers have identical skills, preferences and nonearned incomes. assume further that hours worked requirements vary among firms. show (using plots) that in equilibrium the observed relation between hours worked and the average wage paid per hour is u-shaped. if an investigator ignored hours requirements by firms could these data ever be confused with backward bending supply schedules? (you can use numeric values on nonearned incomes, hours worked requirements of different firms etc. to you draw the figures. hint: in equilibrium, workers shouldn’t have incentives to switch to another firm.)

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