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Debbie has three years of university education, Pam has two, and Kim has one. Debbie earns...

Debbie has three years of university education, Pam has two, and Kim has one. Debbie earns $21 per hour, Pam earns $19, and Kim earns $16. The difference in educational attainment is due completely to different discount rates. How much can the available information reveal about each woman’s discount rate?
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Answer #1

The profits to expanding one's training from one to two years of school and afterward from a few years of school are

915 %SL81 = 1 915-615

w = $21-519 12 = 10.53%

Having Pam's is between 10.53% & 18.75%, and Jane's is under 10.53%

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