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Business, 22.02.2021 19:50 leothedrifter

Suppose that there are two types of employees: Narutos and Sasukes. Employers cannot distinguish between the two types during a job. interview, but they value Narutos more because everyone is more productive around them. Assume that the value of a Sasuke-type employee is $10 and the value of a Naruto type is $20. Also assume that the cost of education for a Sasuke is 2.5y and the cost of education for a Naruto is 2y, where y is years of education. If Narutos make up 25% ofthe population: a. What is the pooling equilibrium wage?
b. What values of y will lead to a separating equilibrium?

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