If older workers have a tax elasticity of labor supply


If older workers have a tax elasticity of labor supply equal to 0.20, by how much will their work activity decline when they reach the Social Security earnings test limit? (Recall that the Social Security earnings test limit is 50 percent. Assume explicit taxes of 20 percent below that limit.)

Instructions: Enter your response as a positive percent rounded to a whole number (do not include a (-) negative sign).

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Business Economics: If older workers have a tax elasticity of labor supply
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