Question: Please explain your answer Based on a 1999 study by Hall and Jones, assume that returns to education are as follows: 13.4% per year for
Please explain your answer

Based on a 1999 study by Hall and Jones, assume that returns to education are as follows: 13.4% per year for the first four years of schooling; 10.1% per year for the next four years of schooling; and 6.8% per year for education beyond eight years. Country A and Country B are identical in all respects except that Country A's population has no schooling whatsoever and everyone in Country B graduates from college after 16 years of schooling. Using Hall and Jones's returns to education estimates, what is the Solow steady state income ratio of Country B's income to Country A's income? Select one: Q a. 2.39 O b. 4.11 O c. 6.16 O d.12
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
