Question

Consider wage rates and migration flows from the low-wage South to the high-wage North, describe one...

Consider wage rates and migration flows from the low-wage South to the high-wage North, describe one shift in conditions that, by itself, could have cause the set of changes to a drop in the northern wage rate, a rise in the southern wage rate, and additional migration from South to North.  Explain the shift and your rationale in 2-3 sentences.

Homework Answers

Answer #1

One condition that can change a drop in the north and wage rate can be the the excessive usage of capital where the capital can replace the the labour so that the demand for labour decreases in the Northern part as a result of which the wage rate decreases and this decrease in the wage rate might be made equal to that of Southern wage rate so that the migration levels also decrease. this can be best scene in developing countries and developed countries where the wage rate of developing countries like India is moving in line with that of developed countries so that migration decreases.

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