In the two- country model of international labor mobility
A)the long- run equilibrium global real wage is equal to the greater of the pre- migration wages in the two countries.
B)the effect of migration is to cause real wages in the two countries to converge.
C)the effect of migration is to cause real wages in the two countries to diverge.
D)labor has only limited international mobility.
E)the long- run equilibrium global real wage is equal to the lesser of the pre- migration wages in the two countries.

Question

Quizplus · Accepted Answer

In the two-country model of international labor mobility, migration leads to a convergence of real wages between the two countries as labor moves from the country with lower wages to the country with higher wages until an equilibrium is reached.

In the Two- Country Model of International Labor Mobility