What should be the effect on labor force participation of, Ask an Expert

Economics

What should be the effect on labor force participation of increasing marginal wage tax rates while keeping other things constant?

a. Labor force participation should go up.

b. Labor force participation will go down.

c. Labor force participation should go up if the income effect dominates the substitution effect.

d. Labor force participation should go up if the substitution effect dominates the income effect.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M961188

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