Question

$1,800 Wages Supply $1,600 $1,400 $1,200 Wager $1,000 $800 $600 Demand $400 $200 0 250 500 750 1000 1250 1500 1750 2000 2250 Number of Workers

1.What will be the equilibrium wage in this market after the mandated benefit is in place ?

2. What will be the equilibrium employment level in this market after the mandated benefit is in place?

3. Taking into account BOTH the change in the market wage and value of the paternity leave benefit , how much worse off or better off are workers as a result of the mandate?

4. Taking into account BOTH the change in the market wage and cost of providing the maternity leave benefit , how much worse off or better off are the firms as a result of the mandate?

Answer 1

Supply قه لر - oldequiliborum Er New equilibrium $1000 $800 & nou Pi demand 1,000 1250 1500 Number of workers It benefits cost $200 per month then demand wire shift downward by 200 units free, demand for labour If benetics vale to workers - suoo then supply shift downward by $460 re, supply of labour increases. - Equilabroum Employment kad = 1500 Equilibrium wage level = $400 are - Workers worse oft n 662 workes supplus decreased by a area see, 400 x 1000 # 2 x 500x too - 400,000 t 100,000 & 500,000 $ - froms are better off by same amount -$500,000