Free labor migration is more effective at improving welfare in low-income countries than moving capital because:

Question

Quizplus · Accepted Answer

Free labor migration allows individuals to move to a place where their skills are in demand and where their productivity can be high, resulting in increased income and welfare. Low-income countries typically have a surplus of labor and a scarcity of capital, so moving capital may not have as large of an impact on improving welfare as moving labor to regions with more capital per person. Additionally, it is often cheaper to move labor than capital, making it a more viable option for many individuals.

Free Labor Migration Is More Effective at Improving Welfare in Low-Income