Bundle: Principles of Economics, Loose-leaf Version, 8th + LMS Integrated MindTap Economics, 2 terms (12 months) Printed Access Card
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Chapter 19, Problem 6PA
To determine

The effect of superstar phenomenon.

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Latin American and Caribbean citizens who migrate to the United States earn salaries there that are higher than what they were earning at home. Since the migrants have the same skills as when they lived in these regions, why are they apparently more productive in the United States?
According to the BLS, wage rates in Mexico are only about 10% of those in the US. What factors would determine whether your firm should shut down its plants in the US and relocate to Mexico, or continue to produce in the US?  
The New York Times cost $0.15 in 1970 and $2.00 in 2011. The average wage in manufacturing was $3.36 per hour in 1970 and $23.09 in 2011.By what percentage did the average wage rise?
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