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The labor supply and demand equations in Mexico and the US are Ndr'llEx = 1402 VLF"Ex anstm": 80 NdUS = 600 4 Wm and N95 = 260 (Notice: To make the...

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e. The US authorities know that wages for unskilled labor in the US will go down with the immigration of Mexican workers to the US. Suppose that the US authorities want to keep US wages at 69. How many Mexican workers should be allowed to enter to the US (i.e., how many work permits should the US government issue)?

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3. The labor supply and demand equations in Mexico and the US are Ndr'llEx = 140—2 VLF“Ex anstm“: 80 NdUS = 600 — 4 Wm and N95 = 260 (Notice: To make the exercise simple, we are assuming that the labor supply curves are
perfectly vertical at 80 in Mexico and at 260 in the US). where Nam“ and NdUS are the number of workers demanded in Mexico and the US (in
Infllions of workers). Wm“ and WUS ate the yearly wage rates in Mexico and the US (in

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Keeping wages at 69 it means there should me a huge labor supply in the US market level Considering... View the full answer

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