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Assume that the U.S. government allows unlimited migration from Mexico to the United States of low skilled workers. In addition, assume that any new immigrants
Assume that the U.S. government allows unlimited migration from Mexico to the United States of low skilled workers. In addition, assume that any new immigrants are demographically similar to recent immigrants. What effect is this policy change likely to have on the wage rate and employment of high-skilled workers in Mexico?
- A.Both the wage rate and employment will decrease
- B.The wage rate will decrease and employment will increase
- C.The wage rate will increase and employment will decrease
- D.To answer this we need to know whether low skilled workers are substitutes or complements to high skilled workers in Mexico
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