An economist wants to estimate the impact of non-labor income on labor supply. She decides that...
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An economist wants to estimate the impact of non-labor income on labor supply. She decides that family inheritance is a significant source of non-labor income to individuals. The economist decides to compare the hours worked of individuals that received large amount of inheritance compared to individuals that received none. Discuss the internal validity of the instrument used by the economist. An economist wants to estimate the impact of non-labor income on labor supply. She decides that family inheritance is a significant source of non-labor income to individuals. The economist decides to compare the hours worked of individuals that received large amount of inheritance compared to individuals that received none. Discuss the internal validity of the instrument used by the economist.
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The economists approach of using family inheritance as an instrument to estimate the impact of nonlabor income on labor supply raises concerns about i... View the full answer
Related Book For
Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
Posted Date:
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