ECON 232 Study Guide - Final Guide: Real Wages
19 Mar 2016
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Us( new world, but not western europe) is a relaively equal income distribuion naion in 19 th. Lower part of skill distribuion moves to us. 1. labor supply for urban young men , supply curve move to the let, increase the real wage in the old world. 2. recall=> price increases input x returns decreases,young urban men expensive =>demand of young urban men decreases, if. X-y complement in producion demand of young urban men increases if x-y subsitute in producion. Land-urban men=subsitutes, increase return on land in the old world. Unskilled labor- urban men= subsitutes: human k decreases a decreases ( , emigraion=>scale decreases and urban populaions decreases(old world economy becomes. Labor supply data decides how labor supply curve look like. High-end from equal to unqual: trade response. >demand for export decreases , export that use urban men intensively. Export expensive: capital follows labor, draw the capital along with labor. Internaional capital markets have elasic capital supply curve (doesn"t rise)
