Final answer:
Without incentives to migrate, workers in Country BETA may choose not to move to Country ALPHA despite the wage gap due to costs, cultural differences, restrictive immigration policies, and possible satisfaction with their current situation. Barriers to trade and migration can prevent the increase in wage from translating to a higher migration flow. The situation is similar to skilled U.S. workers who thrive due to flexibility in the labor market.
Step-by-step explanation:
In a scenario where Country ALPHA has a high average wage due to skilled labor, and Country BETA has a lower wage due to less skilled workers, the absence of migration incentive could occur if the cost of moving, barriers, and personal preferences negate the wage differential. In this case, workers in BETA, despite earning $2/hour, may not find it advantageous to move to ALPHA for a higher wage of $6/hour. Potential reasons include the cost of migration, cultural differences, distance, or satisfaction with their current situation despite lower wages.
If immigration policies are very restrictive, the cost of moving might outweigh the benefit of higher wages. Additionally, if the receiving country has a high cost of living, the real wage difference might not be as significant as it appears. Therefore, without additional incentives or changes in conditions, BETA's workers have no substantial incentive to migrate to ALPHA despite the wage gap.
Workers who can produce more are generally more attractive to employers, which can shift the demand for their labor to the right and increase wages. However, if barriers to trade and migration are high, this will not translate to an increase in migration flow. According to the given statement, most U.S. workers have high skills and wages, and they manage well in a globalized economy, largely because of low labor market frictions that allow them to move to different industries easily.