1.10. Business leaders often say that there is a shortage of skilled workers, and so they argue...

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1.10. Business leaders often say that there is a

"shortage" of skilled workers, and so they argue that immigrants need to be brought in to do these jobs. For example, a recent AP article was entitled "New York farmers fear a shortage of skilled workers," and went on to point out that a special U.S. visa program, the H-2A program, "allows employers to hire foreign workers temporarily if they show that they were not able to find U.S. workers for the jobs."

(Source: Thompson, Carolyn. May 13, 2008. N.Y. farmers fear a shortage of skilled workers. Associated Press.)

a. How do unregulated markets cure a "labor shortage" when there are no immigrants to boost the labor supply?

b. Why are businesses reluctant to let unregu lated markets cure the shortage?

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Modern Principles Macroeconomics

ISBN: 124428

2nd Edition

Authors: Tyler Cowen ,Alex Tabarrok

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