Asked by Jobin Mathew on Apr 26, 2024
Verified
Assuming migration is unimpeded and costless, which of the following statements is most accurate about the effect of immigration on wages in both the origin and destination nations?
A) Wages will rise in the origin nation and fall in the destination nation, and overall wage income must rise.
B) Wages will rise in both nations, and overall wage income must rise.
C) Wages will rise in the origin nation and fall in the destination nation, and the wage changes must cancel each other, resulting in no net change in overall wage income.
D) Wages will rise in the origin nation and fall in the destination nation, but the effect on overall wage income depends on the elasticities of labor demand.
Effect on Wages
The impact on the earnings of workers due to various factors such as economic conditions, market demand, and government policies.
Origin and Destination Nations
Refers to countries from which people or goods leave and the countries where they arrive, commonly used in discussions about migration and trade.
Overall Wage Income
The total income earned by workers and employees through wages and salaries in an economy.
- Analyze the mechanism of wage harmonization between nations as a result of migration.
Verified Answer
Learning Objectives
- Analyze the mechanism of wage harmonization between nations as a result of migration.
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