If labor leaves the country, think of it as a reduction in the total labor supply for the country and a reduction in the length of the X - Axis. If labour leaves, intuitively we know that it becomes relatively more scarce (against capital) meaning that there is an upward pressure on wages as firms must compete for a smaller share of labour. This would shift one of the axis and the production curve inward by the level of labour that has emigrated away, which can then determine the relative share of labour in each sector and the wage. This will impact the labour-intensive sector (agriculture) proportionately more than the capital-intensive sector (manufacturing) due to the relative demand for labour in each sector.
I mostly don't comment on any video but I gotta say thank you for this video by giving such a big help for my econ studies.
Solid video thank you professor my man
Thank you so much for your explanation!
I have to say that, thank you very much!
If wages decrease how can MPL be constant? If the amount of workers raises shouldnt the MPL go down for the wages to go down?
Great resouces! Thanks
Just really great instruction.
what happens if labor leaves the country?
If labor leaves the country, think of it as a reduction in the total labor supply for the country and a reduction in the length of the X - Axis. If labour leaves, intuitively we know that it becomes relatively more scarce (against capital) meaning that there is an upward pressure on wages as firms must compete for a smaller share of labour. This would shift one of the axis and the production curve inward by the level of labour that has emigrated away, which can then determine the relative share of labour in each sector and the wage. This will impact the labour-intensive sector (agriculture) proportionately more than the capital-intensive sector (manufacturing) due to the relative demand for labour in each sector.
What happens if country F imposes a 30% tax on capital income? (gains from FDI)
Many thanks!
棒棒哒！