Question
In reference to migration policies What are the key empirical findings about the effects of the...
In reference to migration policies
What are the key empirical findings about the effects of the policy on labour market outcomes? Summarise.
(Please provide as detailed a response as possible, thanks)
Homework Answers
Answer #1
During the time of pandemic it has been observed that unemployment in the economy has increased because of recession caused by decline in the level of production which has reduced labor demand in the labor market. And this has increased unemployment in the labor market.
In the labor market, this has increased the supply of labor in the labor market. This has shifted the equilibrium from point E1 to point E2 and this leads to decrease in real wages and unemployment in the economy. The labor markte situation is depicted in the diagram below:
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