Policy Design for Labor Supply
A government policy advisor observes that for a specific group of professionals, historical data shows that increases in their hourly pay have consistently led them to work more hours and take less leisure time. Based only on this observed behavior, what can you conclude about the relative influence of the income and substitution effects for this group? Furthermore, if the government's goal is to encourage even more work hours from this group, propose a policy that does not involve a direct wage increase and explain why it would likely be effective, referencing the income and substitution effects in your justification.
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Introduction to Microeconomics Course
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Ch.3 Doing the best you can: Scarcity, wellbeing, and working hours - The Economy 2.0 Microeconomics @ CORE Econ
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Policy Design for Labor Supply
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