How would the market for labor be affected in the Gulf countries? Draw a supply and demand graph to illustrate your answer.
Oil-rich countries in the [Persian] Gulf, already confronted by strong labor protests, are facing renewed pressure from India to pay minimum wages for unskilled workers. With five million immigrant workers in the region, India is trying to win better conditions for their citizens.
Suppose that the Gulf countries paid a minimum wage above the equilibrium wage to Indian workers.