Suppose that the government eases restrictions on the immigration of scientists and engineers. What would happen in the labor market for these professions, all else equal?

Question

Quizplus · Accepted Answer

Easing restrictions on the immigration of scientists and engineers increases the supply of these professionals in the labor market. With a higher supply and assuming demand remains constant, the equilibrium wage for these professions would fall due to increased competition, while the quantity of labor employed would rise because employers can hire more at lower wages.

Suppose That the Government Eases Restrictions on the Immigration of Scientists