In the specific-factors model, labor migration from Mexico to the United States will cause _________ in U.S. low-skilled wages and _________ in Mexican low-skilled wages.
A) increases; decreases
B) increases; increases
C) decreases; decreases
D) decreases; increases

Question

Quizplus · Accepted Answer

In the specific-factors model, labor migration from Mexico to the United States increases the labor supply in the U.S., leading to a decrease in U.S. low-skilled wages. Conversely, the labor supply in Mexico decreases, leading to an increase in Mexican low-skilled wages.

In the Specific-Factors Model, Labor Migration from Mexico to the United