In the short run, which of the following will reduce the gains from labor migration to the recipient nation?
A) Workers remit less than the value of their marginal products.
B) Migrant workers have a declining marginal product so that the equilibrium wage is lower than marginal products of earlier immigrants.
C) Immigrants are low cost in terms of adjustment costs such as crime prevention, language assimilation, and few children enrolled in school.
D) Workers remit more than the value of their marginal products.

Question

Quizplus · Accepted Answer

Workers remitting more than the value of their marginal products means that a significant portion of their earnings is sent back to their home country rather than being spent or invested in the recipient nation. This can reduce the economic benefits or gains that the recipient nation might otherwise enjoy from labor migration, as less money is circulating within its economy to stimulate demand for goods and services.

In the Short Run, Which of the Following Will Reduce