LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Question
Chapter 4, Problem 14P
a)
To determine
The effect of an increase in foreign direct investment by a developed country in a developing country on the labor productivity and short-run wage rate in the developing country.
b)
To determine
The long-run implications of FDI.
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Students have asked these similar questions
1) Using the most recent Occupational Employment Statistics located at the US bureau of labor statistics determine:
a.Which five (5) occupations have the highest wage growth? Do you think these occupations could be offshored?
b.Which five (5) occupations have the lowest wage growth? Do you think these occupations could be offshored?
2) Using the International Trade and Market Access Data located at the World trade organization stats dashboard:
Identify three (5) countries with high average tariffs. Are the countries large or small? What might explain the high tariffs in these countries?
1) Using the most recent Occupational Employment Statistics located at the US bureau of labor statistics
determine:
a. Which five (5) occupations have the highest wage growth? Do you think these occupations could be offshored?
b. Which five (5) occupations have the lowest wage growth? Do you think these occupations could be offshored?
2) Using the International Trade and Market Access Data located at the World trade organization stats dashboard:
Identify three (5) countries with high average tariffs. Are the countries large or small? What might explain the high
tariffs in these countries?
Text
Countries of the Gulf Cooperation Council (GCC) have grown dependent on the migrant
workforce to fuel their economic growth, with 35 million foreign migrants living in the GCC in
2019, according to the United Nations UN. In recent years, policymakers of the GCC countries
have grown wary of this increased dependence and have launched efforts to nationalize their
workforce in an attempt to rectify the structural labour imbalances that have developed over the
last few decades.
In particular, many GCC leaders are worried about social stability and have sought to address
the high rates of unemployment among citizens, the education systems that fail to provide the
skills and competencies required by the private sector, the striking gender imbalance in the
workforce, and the low levels of private-sector employment among citizens.
These efforts at nationalizing the workforce have intensified in response to the recent COVID-
19 crisis and the resulting plunge in oil prices and economic…
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- Perfect labor mobility would tend to equalize real wage rates in participating countries. In reality, complete wage equalization does not occur. Why? In addition, if stringent restrictions are imposed on migration, what will happen to capital in high wage countries?arrow_forwardTrue or False. Because older adults have more human capital, they are more likely to migrate to another country than younger adults.arrow_forwardDemographers have been very surprised that total fertility rates have fallen below 2.0, especially because most people in most countries tell pollsters that they would like to have at least two children. Can you think of any possible economic factors that may be causing women in so many countries to average fewer than two children per lifetime? What about other social or political changes?arrow_forward
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