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Marginal rate of return for each year of schooling

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Reference no: EM131434070

Suppose Mike's wage-schooling locus is given by:

Years of Schooling

Earnings

9

$18,500

10

$21,000 

11

$23,000 

12

$24,800 

13

$26,200 

14

$27,000 

Derive the marginal rate of return for each year of schooling. How many years of schooling will Mike attend if his discount rate is 4 percent? What if his discount rate is 12 percent?

Reference no: EM131434070

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