What is a difference between classical labor migration theory and the real world?
A) People do not move for economic reasons.
B) Workers often have perfect information in certain regions, and imperfect information in other regions.
C) Women migrate less frequently than men.
D) Monetary incentives are weaker than political incentives.
E) Wage rates do not converge among regions; workers are paid more in the developed world.

Question

Quizplus · Accepted Answer

The classical labor migration theory suggests that wage rates would converge among regions as workers move from low-wage regions to high-wage regions. However, in the real world, wage rates do not converge and workers are paid more in the developed world. This is due to factors such as differences in labor market institutions, education and skills, and economic opportunities.

What Is a Difference Between Classical Labor Migration Theory and the Real