There are two reasons why the immigration surplus exists when immigration is accompanied by human capital externalities. Both reasons are evident in Figure 4-16. The first is represented by triangle BCD. The second is represented by trapezoid ABEF. Explain the underlying source of each area. Explain why human capital externalities are important.

data from  Figure 4-16

 

Transcribed Image Text:

Dollars A F B C D E N M VMP WMPL Employment