A news article described the situation at Weifield Group Contracting, a firm based in Centennial, Colorado, that

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A news article described the situation at Weifield Group Contracting, a firm based in Centennial, Colorado, that installs electrical systems. Because the firm was having trouble hiring enough new workers, managers asked many existing workers to work overtime—which means working more than 40 hours per week. Federal law requires firms to pay wages for overtime work that are at least 50 percent more than the regular hourly wage rate. The firm’s CEO was quoted as saying, “There are some guys that will not work overtime. You can’t pay ’em enough to work overtime.” For these workers, what can we say about the size of the income effect of a wage change relative to the size of the substitution effect?

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Economics

ISBN: 9780135957554

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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