In the two-country model of international labor mobility
A) the long-run equilibrium assumes that desired and actual migration are equal.
B) the long-run equilibrium assumes that desired migration exceeds actual migration.
C) the long-run equilibrium assumes that actual migration exceeds desired migration.
D) the long-run equilibrium assumes countries' policies place significant restrictions on migration.
E) the long-run equilibrium is the result of a divergence of the real wages in the two countries.

Question

Quizplus · Accepted Answer

In the two-country model of international labor mobility, the long-run equilibrium assumes that desired and actual migration are equal. This occurs as factors such as wage differentials, job opportunities, and migration costs reach a balance that results in labor moving from high-wage to low-wage countries until the wage differential is reduced. As a result, the flow of labor will stabilize, and the desired and actual migration will be equal.

In the Two-Country Model of International Labor Mobility