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Not necessarily. Maybe the lawyer values her time at $100/hr. Say she bills $150/hr to her clients. Then, before she reaches $250,000 she makes $105/hr (roughly
by sqs 18y ago
Not necessarily. Maybe the lawyer values her time at $100/hr. Say she bills $150/hr to her clients. Then, before she reaches $250,000 she makes $105/hr (roughly). But for each extra hour worked after she has made $250,000 in a year, she only earns $80/hr. At that rate, she may prefer to spend time doing other things.
- katz 18y agoThat is true. If I was a high earner I would rather work less days a year (or work in different countries). After you have a certain amount of money, the extra amount does not increase happiness significantly - so it is generally not worth working for that money.
- tptacek 18y agoIsn't that just relative utility? I'm not sure what that has to do with marginal tax rates.