Labour Economics

look up the social assistance benefit that would be available for a single individual in the two provinces indicated on the following page. Also, look up the minimum wages applicable in each province. Using these 2 pieces of data, draw carefully labelled budget constraints (label both axes, label the wage rate, maximum potential earnings, maximum potential income and non-labour income). (Assume social assistance is the only non-labour income available; assume the provinces apply a 100% clawback on all earnings.)•Notice that the social assistance benefit is likely reported in annual terms whereas the minimum wage is likely reported as an hourly wage. Make your budget constraints appropriate for a single day (i.e., work out how much social assistance an individual would receive per day).•Draw a second diagram, adding an indifference curve to illustrate that the individual has chosen to do 7.5 daily hours of full-time work. Add new labels to show earnings and hours of paid work on the diagram.