In the specificfactors model, labor migration from
Mexico to the United States will cause _________ in
u.S.lowskilled wages and _________ in Mexican low
Skilled wages.
A)increases; decreases
B)increases; increases
C)decreases; decreases
D)decreases; increases

Question

In the specific­factors model, labor migration from
Mexico to the United States will cause _________ in
u.S.low­skilled wages and _________ in Mexican low­
Skilled wages.
A)increases; decreases
B)increases; increases
C)decreases; decreases
D)decreases; increases

Quizplus · Accepted Answer

According to the specific-factors model, labor migration results in an increase in the supply of low-skilled labor in the US, causing low-skilled wages in the US to decrease. In contrast, the supply of low-skilled labor decreases in Mexico, causing low-skilled wages in Mexico to increase. Therefore, the correct choice is decreases (in US low-skilled wages) and increases (in Mexican low-skilled wages). The correct answer is D.

In the Specific­factors Model, Labor Migration from

In the Specificfactors Model, Labor Migration from