复旦国际贸易英文课件05.pptVIP

Movement of Labor Between Countries Effect of Immigration on the Wage in Home We add the ΔL to figure 5.1, The PAMPLA shifts right by ΔL. The origin for manufacturing has not changed so PMMPLM does not change. Effect of Immigration on the Wage in Home The new equilibrium Home wage is at B, at a lower wage. The extra workers are shared between both industries since both industries have more workers, but fixed amounts of capital and land. The wage declines due to the diminishing marginal product of labor. Movement of Labor Between Countries Immigration increases total labor by ?L, shifting the origin to 0A’ The marginal product of labor curve shifts right also by ?L Labor has increased and wages have decreased at new equilibrium, B Figure 5.2 Immigration to the New World Between 1870 and 1913, 30 million Europeans left their homes in the “Old World” to emigrate to the “New World.” The U.S. population increased by 17%. The New World had higher real wages In 1870, real wages in the New World were nearly 3 times higher than in Europe. Over time capital accumulated, so real wages in both locations grew, but at a slower rate in the New World. Immigration to the New World Figure 5.3 In 1870 wages in the New World were almost three times as high as wages in Europe, whereas in 1910 they were about twice as high. Migration also slowed the growth of wages in the New World relative to what they would have been without migration and allowed for slightly faster growth of wages in Europe. Immigration to the US and Europe Today These days, we see migration from developing countries to wealthier ones. In many cases, the immigration includes a mix of low-skilled workers and high-skilled workers. In the U.S. much of the recent debate focused on the issue of illegal immigration. There are about 12 million illegal immigrants in the U.S. This often obscures the fact that the majority of immigrants are legal. The combination of legal and illegal immigrants in the U.S. creates a U-shape