What would happen to number of people volunteering to work


Problem

Going to college in the United States raises average lifetime earnings by about two-thirds, given our current political and economic institutions. But suppose that ownership of the added income generated by your college education suddenly became uncertain. Specifically, suppose a law was passed in your state that enabled the governor to select 10 percent of the graduating class from all of the state's colleges and universities each year and impose a tax of up to 50 percent on the difference between the earnings of these people in their first job and the average earnings of people in the state who have only a high school education. What would happen to immigration into or out of the state? What would happen to attendance at colleges and universities within the state? If the governor were allowed to arbitrarily decide who got hit with the new tax, what would happen to campaign contributions to the governor? What would happen to the number of people "volunteering" to work in the governor's next campaign? Would your decision to invest in a college education change? Explain your responses.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: What would happen to number of people volunteering to work
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