The demand for labor in a domestic industry is D = 36 - 2W, where W= the
Question:
The demand for labor in a domestic industry is D = 36 - 2W, where W= the wage rate and D = the number (in thousands) of employees whom the firms would be interested in hiring at particular wage rates.
Sdomestic = 9 +W, where Sdomestic = the number (in thousands) of native workers who are interested in working in the industry at particular wages. Stotal = 10 + 2W, where Stotal is the total number (including immigrants) of workers who are interested in working in the industry at particular wages.
a. Graph the following curves for this labor market: demand for labor, domestic supply, supply of immigrant workers, and total supply of workers.
b. What is the equilibrium wage rate before immigration? How many workers would be hired?
c. What is the equilibrium wage rate after immigration? How many workers would be hired? How many domestic workers would be hired? How many immigrant workers would be hired?
Step by Step Answer:
Modern Labor Economics Theory And Public Policy
ISBN: 9780132540643
11th Edition
Authors: Ronald Ehrenberg, Robert Smith