Suppose an enormous gold mine opens up close to a small town in Peru. The mine is
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Question:
Suppose an enormous gold mine opens up close to a small town in Peru. The mine is a sufficient firm in the local labour market and they hire a lot of workers. Interestingly, not much changes with the local wage rates. It goes up a little, but not much considering the size of the new firm. What would this observation tell you about internal migration in Peru? What does it tell you about elasticity of labour supply?
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