Economics 15th Edition by James Gwartney,Richard Stroup,Russell Sobel,David Macpherson

Exercise 12

Consider two occupations (A and B) in which people have the same skills and abilities. When employed, workers in the two occupations work the same number of hours per day. In occupation A, employment is stable throughout the year, whereas employment in B is characterized by seasonal layoffs. In which occupation will the hourly wage rate be highest? Why? In which occupation will the annual wage be highest? Why?