Studies of the Hours of Work of Older Men Have

question 28

Multiple Choice

Studies of the hours of work of older men have found that the substitution effect dominates the income effect.This suggests that,other things the same,

• A) an increase in non-work expenses will cause older men to work shorter hours.
• B) an increase in the tax rate on income will cause older men to work longer hours.
• C) tax changes have no effect on their labor supply.
• D) older men will retire earlier in those careers where wages fall more as they get older.

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