10%20International%20Labor%20Mobility

10%20International%20Labor%20Mobility - International Labor...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 1 International Labor Mobility • Introduction and Assumptions • Short-run Effects of Labor Mobility • Long-run Effects of Labor Mobility 2 Introduction International labor mobility involves the movement of workers from one country to another country. – Emigration from the sending country . – Immigration to the receiving country . 3 Short-Run Effects of Migration • Assumptions • Effects on Wages • Effects on Other Factor Returns • Effects on Industry Output • Effects on World Output 4 Short-Run Effects of Migration • Assumption #1: Only 2 countries. – Ireland, I, and – Poland, P.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 5 Short-Run Effects of Migration • Assumption #2: Only 2 goods. – Shoes, S, and – Food, F. 6 Short-Run Effects of Migration • Assumption #3: Only 3 factors of production. – Labor, L, – Capital, K, and – Land, T. 7 Short-Run Effects of Migration • Assumption #4: Factor Mobility. – Labor is a mobile factor of production and can be used in either industry . – Capital is a specific factor of production that can only be used in the production of shoes . – Land is a specific factor of production that can only be used in the production of food . 8 Short-Run Effects of Migration • Assumption #5: Goods Prices. – The prices of both shoes and food are constant.
Background image of page 2
3 9 Short-Run Effects of Migration • Assumption #6: Autarky Relative Wages. – Wages are higher in Ireland than in Poland. 10 Short-Run Effects of Migration 0 F VMPL S , W S VMPL F , W F 0 S W S W F L S , L F P S * MPL S P F * MPL F 11 Short-Run Effects of Migration 0 F VMPL S , W S VMPL F , W F 0 S W S W F L S , L F P S * MPL S P F * MPL F 12
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 12

10%20International%20Labor%20Mobility - International Labor...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online