ps2 - Immigrants in targeted occupations will be given...

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BUEC 280: Assignment #2 Prof. Simon Woodcock Spring 2007 Due: Tuesday, Feb 6 in lecture 1. DH, Ch. 5, Exercise 4 (p. 138) 2. ESC, Ch. 2, Problem 2 (p. 58). For convenience, I reproduce this question here: Suppose that the supply curve for schoolteachers is L s = 20 000 + 350W and the demand curve for teachers is L D = 100 000 – 150W, where L = the number of teachers and W = the daily wage. a. Plot the supply and demand curves. b. What are the equilibrium wage and employment level in this market? c. Now suppose that at any given wage 20 000 more workers are willing to work as schoolteachers. Plot the new supply curve and find the new wage and employment level. Why doesn’t employment grow by 20 000? 3. [From a past midterm exam] The Canadian government has decided to increase the skill of the Canadian labour force by increasing the number of economic (skilled worker) class immigrants admitted to Canada.
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Unformatted text preview: Immigrants in targeted occupations will be given preference in the admissions process. Commercial airline pilots are members of one such targeted occupation. a. This policy change will make it easier for commercial airline pilots to immigrate to Canada. Assume the labour market for commercial airline pilots in Canada is perfectly competitive (there are a large number of potential employers of airline pilots, and airline pilots are not covered by a union agreement). Who gains and who loses from this policy change, and why? b. Now assume that all airline pilots in Canada are members of a union. The union contract specifies that airline pilots cannot be paid a wage less than W u . The contract will not be renegotiated for another 2 years. How does this change you answer to part a?...
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This note was uploaded on 10/12/2009 for the course BUEC 280 taught by Professor Simonwoodcock during the Spring '07 term at Simon Fraser.

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