State ceteris paribus thought experiment underlying policy


Problem

A justification for job training programs is that they improve worker productivity. Supposethat you are asked to evaluate whether more job training makes workers more productive.However, rather than having data on individual workers, you have access to data onmanufacturing firms in Ohio. In particular, for each firm, you have information on hours of jobtraining per worker (training) and number of non-defective items produced per worker hour(output).

(i) Carefully state the ceteris paribus thought experiment underlying this policy question.

(ii) Does it seem likely that a firm's decision to train its workers will be independent ofworker characteristics? What are some of those measurable and unmeasurable workercharacteristics?

(iii) Name a factor other than worker characteristics that can affect worker productivity.

(iv) If you find a positive correlation between output and training, would you haveconvincingly established that job training makes workers more productive? Explain.

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.

Solution Preview :

Prepared by a verified Expert
Microeconomics: State ceteris paribus thought experiment underlying policy
Reference No:- TGS02084503

Now Priced at $25 (50% Discount)

Recommended (91%)

Rated (4.3/5)