Problem
I. How do worker's mobility costs affect the slope of labor supply curves to individual firms? - Explain on your own words and exemplify
II. A firm wants to offer paid sick leave to its workers, but it wants to encourage them not to abuse it by being unnecessarily absent. The firm is considering two options: (i) 10 Days of paid sick days per year, any unused leave days at the end of the year are converted into cash at the worker's daily wage rate. (ii) 10 Days of paid sick days per year, If no sick days are used for two consecutive years the company agrees to buy the worker a 100,000 life insurance policy.
Which policy would be better and why?