Labor Economics
7th Edition
ISBN: 9780078021886
Author: George J Borjas
Publisher: McGraw-Hill Education
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Question
Chapter 4, Problem 5P
a)
To determine
Effect of immigrants in the wages of each regions in the short run.
b)
To determine
The effect of immigrants in the ratio of wage in two regions after the first-year native labor responds to the entry of the immigrants.
(c)
To determine
Effect of immigrants in the wage and job of native workers.
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The market wage in industries A and B are $10/hour. The government raises the minimum wage from $8/hour to $12/hour. If the demand for labor is more elastic in industry B than in industry A:
a) We would expect decreases in employment in both industries, but the losses will be greater in industry B.
b) We would expect a decrease in employment in industry B, but not in industry A.
c) We would expect a decrease in employment in industry A, but not in industry B.
d) We would expect decreases in employment in both industries, but the losses will be greater in industry A
Q47
In the Canadian labour market, demand for labour can be impacted by elasticity of the product in which labour is an input. Assume that the coefficient of elasticity of product demand in Canada is 2.4 in industry A (cannabis sector) and is 0.8 in industry B (fertilizer industry). Other things equal, labour demand will be
Multiple Choice
relatively elastic in both industries A and B.
more elastic in industry B than in A.
constant in both industries A and B.
more elastic in industry A than in B.
relatively inelastic in both industries A and B.
to finance a new health insurance program, the government of Millonia imposes a new
$2-per-hour payroll tax to be paid by employers.
What do you expect to happen to wages and the size of the workforce? Explain
How will this answer change in markets where labor is inelastically demanded?
Explain
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