Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 16, Problem 10P
To determine
To explain:
The impact on the real wages on a large influx of immigrants and the impact on the real wages in the home country of an immigrant.
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Suppose that a large number of Canadian consultants decide to take employment in Europe due to better benefits and work environments at European
companies.
The following graph shows the labour market for consultants in Canada.
Show the effect of the emigration on the Canadian labour market for consultants by shifting the labour demand curve, the labour supply curve, or
both.
Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back
to its original position, just drag it a little farther.
(?)
O
Supply
Demand
Supply
Demand
LABOUR
WAGE
The graphs below show demand for labor in two countries, A and B, and several vertical labor
supply curves. Use these diagrams to answer the question about the effects of migration from one
country to the other in search of a higher wage. Let the amount of migration (change in labor
supply) be equal to the (identical) horizontal distance between the supply curves in both graphs.
Country B
Country A
Se
SB
WB
SA
SA
WA
d
PB
h
b
a
DA
LB
LA
What is the effect of this migration on the welfare of workers who migrate?
They gain area g
They gain area (g+h+e)
They gain area (a+b+c).
O They gain area (g+h)
How will each of the following scenarios impact the market for labour
The country receives an influx of new immigrants.
Using (Decrease wage rate, increase employment, employment unchanged, shift outwards/to the right, increase wage rate, wage rate unchanged, shift inwards/to the left, decrease employment, curve unchanged movement along the curve.
a. Impact on demand for labour
b. Impact on the supply of labour
c. impact on age rate
d. impact on employment rate.
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Similar questions
- Discuss labor supply and demand. Besides training and education, what are some of the things that have a significant impact on the supply and demand of labor? Explain why you believe they have such an impact. What other factors can directly influence the labor market?arrow_forwardThe graphs below show demand for labor in two countries, A and B, and several vertical labor supply curves. Use these diagrams to answer the question about the effects of migration from one country to the other in search of a higher wage. Let the amount of migration (change in labor supply) be equal to the (identical) horizontal distance between the supply curves in both graphs. Country B Country A SB SB WB WA SA SA d e g PB h a b DA LA LB What is the effect of this migration on the welfare of factors other than workers in Country A? They gain area (a+b) They lose area (a+b) They gain area b They lose area (a+b+c).arrow_forwardhow does the demand and supply for labour affect the wage rate of workers?arrow_forward
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