ECON 155 Lecture Notes - Lecture 10: Ecotax
Document Summary
Export products(and services): sold outside of city e. g. manufacturing, information, to services. Local products: sold in city (e. g. construction, trade, real estate, education, health, soc personal services, gov) Export firms and workers spend money on local products, supporting local jobs. Local firms and workers spend money on local prod, supporting local jobs. When export firms grow they hire more people. Local jobs don"t grow much on own tion, tourism, advanced lth, social services, restaurants, al jobs. Common way to estimate the economic impact of growth of export base use mu. Delta export employment x multiplier = delta total employment. Focus is on jobs rather than per capita income. Estimates the change in labor demand not change in jobs ( if supply is pe inelastic no change jobs. Upward sloping but simplifying assumptions: fixed hours per week working, fi. Contribute to positive slope of labor supply curve.
