Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This question is based on the subject economics if immigration so please solve all the parts. The curves are inelastic and in B part please

This question is based on the subject economics if immigration so please solve all the parts. The curves are inelastic and in B part please talk about capital market

image text in transcribed
In the book, there was a skill-unskilled model of employment. Instead, suppose that there are two types of workers: high-skilled and low-skilled workers. In addition, there is capital being utilized to create goods. To make our lives easy, assume that production is q = L. L. K1/2. Once again assume that the market is perfectly competitive and that the price is determined by the local market (as opposed to the world market). a) If LL = 8LH , what does this tell us about the relative wage wH / wL? b) Assume the amount of Capital and Labour are all perfectly inelastic, create a diagram for each factor market (i.e. for each type of labour and capital) and explain what the influence on wage would be if more low-skilled workers were allowed to immigrate. c) How does your answer to the previous question change if only high-skilled workers are allowed to immigrate. d) Does this suggest anything about what you would expect to be happening to wage gaps compared to the average worker? What about the Gini coefficient or inequality? + Drag and drop your files or click to browse

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Economics

Authors: Robert H. Frank, Ben Bernanke Professor, Kate Antonovics, Ori Heffetz

6th Edition

0078021855, 9780078021855

More Books

Students also viewed these Economics questions

Question

Did the researcher provide sufficient description?

Answered: 1 week ago