High-skilled labor allocation High-skilled labor allocation L computers shirts 0 shirts computers H shirts H 0 shirts H shirts 1 shirts HL 1 Lshirts Low-skilled labor allocation (to shirts and computers) Hcomputers Lcomputers Hharts Lshirts Lcomputers computers H computers H computers Lcomputers L shirts H computers Lcomputers 0 L shirts Low-skilled labor allocation (to shirts and computers) computers H computers L Shirts Hcomputers Using these two plots (also on the L7 slides), explain what happens to the labor market (H and L) during the structural change of two industries when the country participates in international trade. Why the original wages (in autarky) can no longer be sustained in this case?
High-skilled labor allocation High-skilled labor allocation L computers shirts 0 shirts computers H shirts H 0 shirts H shirts 1 shirts HL 1 Lshirts Low-skilled labor allocation (to shirts and computers) Hcomputers Lcomputers Hharts Lshirts Lcomputers computers H computers H computers Lcomputers L shirts H computers Lcomputers 0 L shirts Low-skilled labor allocation (to shirts and computers) computers H computers L Shirts Hcomputers Using these two plots (also on the L7 slides), explain what happens to the labor market (H and L) during the structural change of two industries when the country participates in international trade. Why the original wages (in autarky) can no longer be sustained in this case?
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
Problem 13P
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