Substitution and Income Effect: These two terms are very familiar to anybody who has taken an intermediate course in macroeconomics. With the recent articles regarding volunteerism and labor statistics, I thought that it was very timely to write on these two very important concepts.

Let's start with a thought experiment: if you were to receive a 10% increase in your hourly wage, would you increase, decrease, or maintain your hours worked? Believe it or not, any answer is correct, despite many assumptions regarding the positive slope of labor supply curves. The reason that any answer is correct lies in an understanding of substitution and income effects.

Carnivals and Links for the Week!

The "VAT", the so-called value-added tax, has received some attention here before at Don't Quit Your Day Job. Unfortunately for everyone, it probably will receive a bunch more in the future. Fresh off Paul Volker's comments to the New York Historical Society putting the VAT in play, the United States could be getting a VAT of its own. As pointed out in this very good article at Super-Economy, the US is the only county in the OECD that doesn't have a Value-Added Tax.

Recently we've been giving you lots of information on that most popular of topics- the income tax! We here at DQYDJ see no need to tone down our articles on taxes at this point... something about this date (maybe it has something to do with the April 15 tax deadline?) makes tax articles popular. Anyway, thanks to the Tax Foundation, we have an interesting measurement of tax - the number of days you have to work to be free and clear of the burden of tax, otherwise known as Tax Freedom Day!

From the offbeat category comes this awesome data set found through the National Journal. Scarborough USA, a joint undertaking of market research companies Nielsen and Arbitron surveyed 218,000 people between August 2008 and September 2009 to try to figure out the political leanings of sports viewers. Surveyors tried to figure out both how viewers self-identified politically, and also their likelihood to vote. This data has been published, and here is is (on ManyEyes!) for you to play with!

You already screen out embarrassing photos from you Facebook profile. Do you soon have to start screening out your credit-unworthy friends? That's the gist of an article that appeared in PC World: those you associate with online may be reflected in the credit offers you receive when you apply for credit.

A collection of article links and carnivals for the week.

How has the recession been affecting the job market? A new report from the research firm Towers Watson says that workers are tending to stick with the same employer as long as possible in the midst of the current recession (US Workers were surveyed in November and December). The number of workers in the survey who say they want to work for a single company or two or three companies is an impressive 79%.

Carnivals and links for the week!

Even though St. Patrick's day is known as a drinking holiday, it doesn't do too much to spur beer sales for home consumption. Nielsen, a market research company, tracks the purchase of beer for the two weeks leading up to holidays... and St. Patrick's is the lowest. Of course, St. Patrick's day also sees a higher number of people going out to restaurants and bars (only 16.7% went to a private St. Patrick's party in 2009).