Econ 380, Project #2
Submit via Blackboard upload by 5pm on November 19th. Late submissions will result in a penalty. Submit this word file with answers typed in red font. Also attach one excel file with computations and/or downloaded data corresponding to each question (highlight the data you used). Label each the excel sheet with the appropriate question number/letter.

1. (Calculate with Excel only) Consider Carl, a 26 year old native San Diegan who has just graduated from SDSU with a B.A. in Economics. He has received two job offers, one in San Diego that pays him $50,000/year and another in Miami, Florida that will pay him $55,000/year. He is planning on working in the position, regardless of the location, until he finishes his 20th year of work. His added monetary costs the first 4 years in Miami will be $20,000 each year and he expects psychic costs totaling $2,000 the first year only. He can borrow at the treasury rate of 2.5%. Using the information provided and assuming all costs and benefits areincurred/accrued at the end of each year determine the following.

a. Calculate the net present value of his migration (round to hundredths).
When inputting the discount rate into Excel use a decimal to reflect percentage (i.e. 2.5% is input as .025).
b. Calculate the internal rate of return of his migration (round to hundredths).
c. Based on the NPV and IRR, should he migrate? Why?
2. Visit the BLS website link provided here and using the report (table A, June 2015) complete the following:
a. (Use Excel only) Using Figure 7.1 in the text as your template, generate a pie chart reflecting the Compensation Components for Private Industry.

b. Do the same as above, for State and Local Government data.

c. Compare the two pie charts and determine which sector is providing a compensating wage differential. You may assume that total compensation in each sector is identical. Briefly explain your answer.
3. Using Table-1 of the Census Bureau’s Income and Poverty in the U.S. for 2014, answer the following:

a. What is the median household income in 2014 and by what percent has it increased or decreased from the prior year?

b. Which “Type of Household” had the highest and lowest median income in 2014? What are the figures? Give at least 2 reasons this difference might exist.

c. Which “Race Origin of Householder” had the highest and lowest median income in 2014?What are the figures? Give at least 2 reasons this difference might exist.

d. Which “Age of householder” had the highest and lowest median income in 2014?What are the figures? Give at least 2 reasons this difference might exist.

e. Which “Region” had the highest and lowest median income in 2014? What are the figures? Give at least 2 reasons this difference might exist.

f. Looking at the EARNINGS OF ALL FULL-TIME YEAR ROUND WORKERS for 2014, calculate in percentage terms how much higher the median wage is for men relative to women. Give at least 2 compensating wage differential explanations for this difference.
4. Visit the following BLS websites regarding union affiliation and income to complete the following table.
Characteristic 2014Pure Wage Advantage in PercentageTerms
Compare “Represented by Unions” to “Non-Union” 2014 Percent of Employed Represented by Unions
Use “Represented by Union”
Total over age 25
Men over age 25
Women over age 25
Black over age 16
White over age 16
Asian over age 16
Hispanic over age 16
Full-time workers ———N/A————
Part-time workers ———N/A————

a. Based on the data, which characteristic has the highest and lowest union wage advantage? Give at least 2 reasons this difference might exist?

b. Based on the data, which characteristic has the highest and lowest union representation? Give at least 2 explanations for your results.
c. Based on the 2014 “Members of Unions” data, what is the difference between the number of womenover the age of 16 and men over the age of 16. Calculate overall and for each racial category (make sure to use proper denominations: i.e. 1000 thousands is written as 1,000,000) and indicate if there are more men or women that are members.

5. Visit the following BLS website illustrating the wage and employment statistics from May 2014 and perform the following operations:

a. Sort all occupations by annual mean wage. What industry is most represented in thetop 10 highest paying occupations? What level of education do they all require (i.e.<HS, HS, AA, BA, MA, Doctorate)?

b. What industry is most represented in the bottom 10 (ignore the ones without data) and what level of education do they require (i.e. <HS, HS, AA, BA, MA, Doctorate)?
c. Click on the occupation labeled “Economists” and fill in the bell curve below with the hourly wage data provided. Also, include a median line with the corresponding wage.

d. Based on the completed bell curve what is the probability of a randomly selected Economistmaking more the 90 percent of others in the profession?

e. Locate the anticipated occupation you are going to compete in once graduating college. Create a similar bell curve based on the same BLS data. What do you believe you will need to do, or what skill do you think you will need to have, to be part of the 90th percentile?