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Unformatted text preview: Calculate the level of output in each country. b) Derive an expression for the marginal product of labor in each country. What is the wage in Home and Foreign in the absence of labor migration? c) Suppose now that restrictions on labor migration are lifted. Use your answer to (b) to work out the allocation of labor between Home and Foreign after migration has taken place. What is the wage in the two countries now? d) Use your answer to c) to comment on why politicians in Europe promote policies that restrict entry of labor from China....
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- Spring '11