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1. Statement 1: Since Poland joined the European Union (EU) in 2004, over one million of its workforce have migrated to other countries in the EU - Edexcel - A-Level Economics A - Question 1 - 2021 - Paper 1
Question 1
1. Statement 1: Since Poland joined the European Union (EU) in 2004, over one million of its workforce have migrated to other countries in the EU. Statement 2: Many... show full transcript
Worked Solution & Example Answer:1. Statement 1: Since Poland joined the European Union (EU) in 2004, over one million of its workforce have migrated to other countries in the EU - Edexcel - A-Level Economics A - Question 1 - 2021 - Paper 1
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Step 2
Explain the likely impact of migration on the wage level of engineers in Poland.
Answer
The migration of engineers from Poland is likely to impact the wage levels in several ways:
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Supply of Labour Decreases: As engineers migrate, the supply of engineers in Poland decreases, which can lead to an increase in demand for the remaining engineers.
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Wage Rises: With a reduced supply of engineers, firms may be compelled to offer higher wages to attract and retain talent. This can create upward pressure on wages overall.
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Shortage of Engineers: The migration may result in a shortage of skilled engineers, which can hinder development in various sectors, prompting firms to compete for available engineers by offering better compensation.
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Market Equilibrium Adjustments: As wages rise due to excess demand for labour, a new equilibrium in the labour market will be established. This adjustment reflects the balance between the decreased supply of engineers and the demand from firms needing skilled labour.