Answer to Question #97921 in Macroeconomics for sude

Question

Assume skilled TRNC citizens have a relatively easy access to the job markets in UK, EU, Australia and Canada, while the access of unskilled TRNC citizens to those markets is more limited and wages in those job markets are considerably higher compared with the wages in TRNC and Turkey. Also assume local market for unskilled labor is more competitive as a result of immigrants comming from Turkey and other developing countries to TRNC to work. How would these factors affect the value of education for TRNC citizens? Explain your answer.

Answer 1

 The value of education for TRNC citizens will increase.This is because the skilled workers will have more possibilities to find the job with higher salary.