# Econ 380, Project #2 – GradSchoolPapers.com

Econ 380, Project #2

Submit via Blackboard upload by 5pm on November 19th. Late submissions will result in a penalty. Submit this word file with answers typed in red font. Also attach one excel file with computations and/or downloaded data corresponding to each question (highlight the data you used). Label each the excel sheet with the appropriate question number/letter.

1. (Calculate with Excel only) Consider Carl, a 26 year old native San Diegan who has just graduated from SDSU with a B.A. in Economics. He has received two job offers, one in San Diego that pays him $50,000/year and another in Miami, Florida that will pay him $55,000/year. He is planning on working in the position, regardless of the location, until he finishes his 20th year of work. His added monetary costs the first 4 years in Miami will be $20,000 each year and he expects psychic costs totaling $2,000 the first year only. He can borrow at the treasury rate of 2.5%. Using the information provided and assuming all costs and benefits areincurred/accrued at the end of each year determine the following.

a. Calculate the net present value of his migration (round to hundredths).

When inputting the discount rate into Excel use a decimal to reflect percentage (i.e. 2.5% is input as .025).

b. Calculate the internal rate of return of his migration (round to hundredths).

c. Based on the NPV and IRR, should he migrate? Why?

2. Visit the BLS website link provided here and using the report (table A, June 2015) complete the following:

a. (Use Excel only) Using Figure 7.1 in the text as your template, generate a pie chart reflecting the Compensation Components for Private Industry.

b. Do the same as above, for State and Local Government data.

c. Compare the two pie charts and determine which sector is providing a compensating wage differential. You may assume that total compensation in each sector is identical. Briefly explain your answer.

3. Using Table-1 of the Census Bureau’s Income and Poverty in the U.S. for 2014, answer the following:

a. What is the median household income in 2014 and by what percent has it increased or decreased from the prior year?

b. Which “Type of Household” had the highest and lowest median income in 2014? What are the figures? Give at least 2 reasons this difference might exist.

c. Which “Race Origin of Householder” had the highest and lowest median income in 2014?What are the figures? Give at least 2 reasons this difference might exist.

d. Which “Age of householder” had the highest and lowest median income in 2014?What are the figures? Give at least 2 reasons this difference might exist.

e. Which “Region” had the highest and lowest median income in 2014? What are the figures? Give at least 2 reasons this difference might exist.

f. Looking at the EARNINGS OF ALL FULL-TIME YEAR ROUND WORKERS for 2014, calculate in percentage terms how much higher the median wage is for men relative to women. Give at least 2 compensating wage differential explanations for this difference.

4. Visit the following BLS websites regarding union affiliation and income to complete the following table.

Characteristic 2014Pure Wage Advantage in PercentageTerms

Compare “Represented by Unions” to “Non-Union” 2014 Percent of Employed Represented by Unions

Use “Represented by Union”

Total over age 25

Men over age 25

Women over age 25

Black over age 16

White over age 16

Asian over age 16

Hispanic over age 16

Full-time workers ———N/A————

Part-time workers ———N/A————

a. Based on the data, which characteristic has the highest and lowest union wage advantage? Give at least 2 reasons this difference might exist?

b. Based on the data, which characteristic has the highest and lowest union representation? Give at least 2 explanations for your results.

c. Based on the 2014 “Members of Unions” data, what is the difference between the number of womenover the age of 16 and men over the age of 16. Calculate overall and for each racial category (make sure to use proper denominations: i.e. 1000 thousands is written as 1,000,000) and indicate if there are more men or women that are members.

5. Visit the following BLS website illustrating the wage and employment statistics from May 2014 and perform the following operations:

a. Sort all occupations by annual mean wage. What industry is most represented in thetop 10 highest paying occupations? What level of education do they all require (i.e.