Under the us social security system workers must contribute


Question: Under the U.S. Social Security system, workers must contribute 6.2 percent of their wages (up to a maximum you can disregard here) and employers must also contribute 6.2 percent. Using the supply and demand for labor in the entire economy, show that if the demand for labor is relatively elastic and the supply isrelatively inelastic then workers pay relatively more than their stated 6.2 percent, and if the elasticities are reversed their employers do so.

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Microeconomics: Under the us social security system workers must contribute
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