Labor Economics
8th Edition
ISBN: 9781260484434
Author: George Borjas
Publisher: Mcgraw-hill Higher Education (us)
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Chapter 8, Problem 1RQ
To determine
Determine how the workers who wish to maximize the present value of lifetime earnings calculate the net gains to migration.
Expert Solution & Answer
Explanation of Solution
According to the trend, employees calculate the value of employment opportunities available in the each of the alternative destinations and subtract the cost of moving from the origin to the destination. They then determine which option maximizes the
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