Suppose labor demand for low-skilled workers in the United States is w = 35 – 0.2Ewhere E is the number of workers (in millions) and w is the hourly wage. There are 100 million domestic U.S. low-skilled workers who supply labor inelastically. If the U.S. opened its borders to immigration, 25 million low-skill immigrants would enter the U.S. and supply labor inelastically. What is the market-clearing wage if immigration is not allowed? What is the market-clearing wage with open borders?
Suppose labor demand for low-skilled workers in the United States is w = 35 – 0.2Ewhere E is the number of workers (in millions) and w is the hourly wage. There are 100 million domestic U.S. low-skilled workers who supply labor inelastically. If the U.S. opened its borders to immigration, 25 million low-skill immigrants would enter the U.S. and supply labor inelastically. What is the market-clearing wage if immigration is not allowed? What is the market-clearing wage with open borders?
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter11: Labor Markets
Section: Chapter Questions
Problem 16SQ
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Suppose labor demand for low-skilled workers in the United States is w = 35 – 0.2Ewhere E is the number of workers (in millions) and w is the hourly wage. There are 100 million domestic U.S. low-skilled workers who supply labor inelastically. If the U.S. opened its borders to immigration, 25 million low-skill immigrants would enter the U.S. and supply labor inelastically.
- What is the market-clearing wage if immigration is not allowed?
- What is the market-clearing wage with open borders?
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