Machine….

1. The Tanaka brothers own strawberry farms in California and Washington. Most of their strawberries are picked by migrant workers, including Abelino and Marcelina, who come from the Mexican state Oaxaca. John Tanaka said that they pay their pickers the minimum wage in both states. The minimum wage is lower in California ($8.00) than Washington ($9.00), but only California requires minimum wage workers be paid overtime. As a result, the Tanaka brothers to pay their pickers $12.00 per hour for pickers working more than 40 hours per week. Abelino and Marcelina are neighbors in Oaxaca but not in the United States, because Abelino chooses to pick strawberries in California and Marcelina chooses to pick them in Washington. Suppose they have 70 hours per week that they can allocate between leisure and labor, and that they choose whether to go to California or Washington based on which one maximizes their utility. Illustrate their choice Talk about their indifference curves

3. Machine…. “The packet says that lettuce cutters make $8.37 an hour, but broccoli cutters only get $7.69. Why is that?” Looking for a bilingual driver of a forklift I have a hard time picturing myself writing an entertaining book about driving a forklift. “ I eat dinner, take a shower, and type uip some quick notes before falling into a sound sleep.” If he were writing a book about strawberry pickers would he go to Washington or Californa? Immersion Journalism … Immersion Anthopology… When demand is high we work until dusk.

4. Stevenson (2010) estimates the effect of participating in high school sports on adult wages using samples drawn from the 1979 Longitudinal Survey of Youth (NLSY). NLSY randomly selected teenagers and young adults in 1979 and surveyed them annually until 1994 when they were adults. Stevenson argues that economists need to estimate if they want to identify the causal effect of sports participation on wages where is individual i’s wage in 1994 and is an indicator variable for whether the individual played a sport in high school; and are a set of variables that control for individuals’ demographic characteristics, their family backgrounds, and the characteristics of their schools; and are measures of the individual’s conventional and unconventional abilities; and, is a random error term, which is uncorrelated with the explanatory variables. The NLSY does not include a measure of UA, causing Stevenson to use it to estimate the following two specifications:

5. Using the information in table 1, what is the interpretation of for girls using specification (A)? Stevenson argues that , which is estimated using specification A, is biased because it omits conventional measures of ability. What is the formula for omitted variable bias in this case? Interpret what it implies about the direction of the bias. Does the pattern of the estimates of presented in table 1 support her hypothesis that the estimate of from specification A is biased?