Figure 1 illustrates the labor market in a country that, Econometrics

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Figure 1 illustrates the labor market in a country that

Figure 1 illustrates the labor market in a country that does not tax labor income. Suppose that the government introduces a Social Security tax on workers of $2 per hour. Use this information to work Problems.

How many workers are employed? What is the wage rate paid by employers and what is the workers' after-tax wage rate? How many workers are no longer employed?

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Econometrics: Figure 1 illustrates the labor market in a country that

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Econometrics: Figure 1 illustrates the labor market in a country that

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