In the two-country model of international labor mobility
A) migration has no effect on global output, although some groups are made better off.
B) migration has no effect on global output, although some groups are made worse off.
C) migration results in increased global output, and all groups are made better off.
D) migration may reduce global output, although some groups are made better off.
E) migration results in increased global output, although some groups are made worse off.

Question

Quizplus · Accepted Answer

Migration typically results in increased global output because it allows labor to move to where it is most productively employed. However, not all groups benefit equally; while the global economy grows, some groups within countries may be made worse off due to changes in labor supply and demand dynamics.

In the Two-Country Model of International Labor Mobility