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Simple economic analysis based on supply and demand for labor would predict that increasing the supply of labor would decrease wages. But if you look at the real world data you find that it is not that simple. High wage cities with active economies like New York, Chicago, and LA attract more immigrants, so more often than not cities with a high inflow of immigrants have HIGHER wage rates

2007-11-06 14:25:11 · answer #1 · answered by meg 7 · 0 0

very simple :
the imperial system of economics is all based on the demand and supply system.
the greater the supply the lesser will be the demand and so simple that decrease in demand offer lower prices.
thats why in the excess labour market situation that will be availabel cheaper.
but the point that you have raisen is not universal. in european markets where the per capita income is high and the GDP is higher and there are very little or no bugdet and trade deficites so even there is not an excess labour situation but the wages are the highest in the world.
OK:::::::::::::::::::::???????????

2007-11-06 19:17:13 · answer #2 · answered by Anonymous · 0 0

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RE :Why cities with a high inflow of immigrants have lower wage rates.?
Follow 3 answers

2017-03-26 22:59:29 · answer #3 · answered by ? 6 · 0 0

increased supply of labor.

2007-11-06 14:06:51 · answer #4 · answered by Anonymous · 0 0

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