Typewrite your answers and show all your work when making calculations. You can make calculations by hand and add the images to the document but make sure to typewrite your answers (you can use this Word document). Remember to submit to Canvas before 2:30 pm on the due date.
[30 points] Education
[10 points] Using the model of the demand for schooling we discussed in class, explain what happens to the present value of benefits if the discount rate increases and how it affects the schooling decision .
[10 points] Why low-income households might have a higher discount rate than high-income households?
[10 points] Using the same model and concepts we discussed in class, describe how the construction of a factory demanding workers with less than a high school degree only would change the optimal schooling choice in the area.
[35 points] Gender
[10 points] Briefly explain why does the theory we discussed in class predicts a U-shaped relationship between female labor force participation and economic development? What does the evidence show? What are the factors explaining the rise in female labor force participation?
[5 points] How do we measure whether there are “missing girls” in a country? How does development may contribute to the missing girl problem?
[5 points] What is the rationale behind the gender biases observed in countries like China, India, and Azerbaijan?
[15 points] Using the information on average earnings calculate the pay gender gap for each of the countries listed below. Interpret the gender pay gap of the United States and Brazil. Does having a lower gender pay gap does it always mean earning equality? Why or why not?
Average monthly earnings of employees
Female Male
Country Time U.S. dollars U.S. dollars Pay Gap
Azerbaijan 2020 311.65 486.18
Brazil 2020 525.45 599.57
Chile 2020 824.14 1017.97
Honduras 2020 380.63 313.7
United States 2020 3925.00 5036.62
Source: Downloaded from ILOSTAT.
Agriculture
How can agricultural technologies be generated to respond to farmers’ need? In other words, in which cases technology can substitute for land or labor?
Explain in words why the risk of land appropriation affects the amount of inputs a farmer may use on their field? Which type of investment do you expect would be more affected by land insecurity: fertilizer usage or irrigation investments? Why?
[15 points] Explain why farmers might choose to pay for fertilizer now to be delivered later rather than opting to pay only once it arrived. Is this choice rational? Why or why not?
Last Completed Projects
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