If job X pays more than identical job Y,then the wage rates will:
A)remain different if mobility is costless
B)remain different if information is perfect
C)equalize because labor will migrate from X to Y
D)equalize if information is perfect and mobility is costless

Question

Quizplus · Accepted Answer

If information is perfect and mobility is costless, then workers will be able to find out about job Y and migrate to that position, increasing the supply of labor for job Y and decreasing it for job X. As a result, the wage rates will eventually equalize until the marginal product of labor is the same in both jobs.

If Job X Pays More Than Identical Job Y,then the Wage