Question

Problem #3: Part-time work vs. GPA Many college students work to pay for school expenses, e.g., tuition, texbooks, etc. Suppose it is well known that college students who work a part-time job obtain a lower GPA than those who don't (because they have less time for studying). Considering GPA is one of the important criteria for future employment, doing part-time work can be interpreted as an increase in current income at the cost of reduced income in the future. Using our standard leisure-consumption graph, show how college students' labor supply decisions are aected by the harm they cause to their GPA. (Hint: Think of \study time" as leisure{the time you are not working. For every hour that a student is working and hence cannot study, they bear a cost in terms of reduced future income. This is like a tax on their current earnings of $z per hour). What is the eect of having to pay a $z tax on current earnings on the labor force participation rate of college students? The government is considering giving a lump-sum amount to every college student re- gardless of how much they work. What does this reveal about whether the government believes college students should be working more or less?

Answer 1

The students who worked less than 20 hours per week had an average GPA of 3.13, while nonworking students had an average GPA of 3.04.The BLS's research indicates that students who work more than 20 hours a week had much lower grade point average_2.95 on average Leisure Work present context is generally referred to as income-leisure constraint which shows the various combinations of income and leisure among which the individual will have to make a choice. Thus, if a person chooses combination C, this means that he has OL1 amount of leisure time and OM1 amount of income. He has earned OM1 amount of income by working TL1 hours of work. Choice of other points on income-leisure line MT will show different amounts of leisure, income and work. Income OM = OT.W Thus, the slope of the income-leisure curve OM/OT equals the wage rate College grants for international students There are student grants available to international students. Grant programs for international students are not as abundant as those for domestic students. However, there are still a variety of grants dedicated specifically to supporting international students