Many industrialized countries such as the United States attempt to seriously restrict immigration of production workers, but are more open to immigrants who are highly-skilled. Why might this be the case? Why is this a problem for developing countries and how might they deal with the problem?© BrainMass Inc. brainmass.com October 25, 2018, 2:24 am ad1c9bdddf
When a highly skilled workers immigrate, human capital of their new homes increases. Human capital is represented by education and training, and is costly. Educating a citizen can be a considerable expense. Since the immigrating workers take with them this resource, it is as if a valuable commodity has been imported with the immigrant. Production workers, on the other hand, do little to improve the conditions of their new homes. They may be better off (having more opportunities than they did at home), but the receiving country often ends up supporting them if the encounter hardship. They are often not able to set aside ...
Restriction on the immigration of unskilled workers; solutions for developing countries who are losing their skilled workers.
Consider the economy of United States and Mexico. There are two goods, computer chips and tequila, and two factors of production, skilled and unskilled workers. Computer chips are relatively intensive in skilled labor, and there are no technological differences between both countries. Initially there is no trade.
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