The existence of migration costs implies that factor-price-equalization in the labor market is less likely.

Question

Quizplus · Accepted Answer

Migration costs, such as the emotional and financial costs of moving, make it more difficult for workers to move between different labor markets. As a result, factor-price-equalization in the labor market is less likely to occur because workers cannot easily move to wherever wages are higher.

The Existence of Migration Costs Implies That Factor-Price-Equalization in the Labor