One example of emigration from Europe was during the period between 1870 and 1913. Wages grew rather than declined in the destination nations of the United States, Canada, and Australia. Why?
A) The economic theory did not predict well.
B) Workers from Europe were highly skilled and raised the equilibrium wage.
C) The government stepped in and raised the minimum wage.
D) Wages rose due to the industrial revolution and higher levels of capital but grew more slowly because of the immigration.

Question

Quizplus · Accepted Answer

Wages rose due to the industrial revolution and higher levels of capital, which increased productivity and demand for labor, but the influx of immigrants slowed the rate of wage growth.

One Example of Emigration from Europe Was During the Period