r/econhw • u/DetailCommercial1190 • 14h ago
Ricardian Model - Labor Migration
I am studying the Ricardian model, and I’ve been wondering how it could be used to explain the economic effects of labor migration.
My initial thought is that labor migration might favor autarky, since a country receiving additional workers could increase its production without necessarily increasing its labor costs per unit.
On the other hand, under free trade, an increase in the labor force could also allow a country to expand production in industries where it has a comparative advantage, potentially increasing its gains from trade.
However, it might be cheap to produce abroad and import.
I feel like this is a very one-dimensional way of looking at it, if there are any economists here who could help me understand this better, I’d really appreciate it.