Millions of people from Mexico have migrated to the United States.This has reduced the supply of labor in Mexico and increased the supply of labor in the United States.Assume that the demand for labor in Mexico and the United States is unchanged.Then wages in the United States ________ and wages in Mexico ________.

Question

Quizplus · Accepted Answer

The increase in supply of labor in the United States will decrease the wages due to competition among workers, while the decrease in supply of labor in Mexico will increase wages due to shortage of workers. Therefore, wages in the United States will fall and wages in Mexico will rise.

Millions of People from Mexico Have Migrated to the United