question archive Say that in a country the return to schooling is 10% each year for the first four years of school and then 5% each year for the remaining years
Say that in a country the return to schooling is 10% each year for the first four years of school and then 5% each year for the remaining years
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Say that in a country the return to schooling is 10% each year for the first four years of school and then 5% each year for the remaining years. Also, say that 40% the population goes to school for 3 years and 60% for 6 years. What share of wages is due to schooling?
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Answer :- Share of wages due to schooling = 30%
Step-by-step explanation
Years Population goes to school Return Wage share(Population goes to school . Return/100)
1 40% 10% 4%
2 40% 10% 4%
3 40% 10% 4%
4 60% 10% 6%
5 60% 5% 3%
6 60% 5% 3%
7 60% 5% 3%
8 60% 5% 3%
9 60% 5% 3%
Total Wage Share = 30%
