Using the numerical example in Problem 1, assume now that Foreign limits immigra- tion, so that only
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Using the numerical example in Problem 1, assume now that Foreign limits immigra- tion, so that only 2 workers can move there from Home. Calculate how the movement of these two workers affects the income of five different groups:
a. Workers who were originally in Foreign
b. Foreign landowners
c. Workers who stay in Home
d. Home landowners
e. The workers who do move Studies of the effects of immigration into the United States from Mexico tend to find that the big winners are the immigrants themselves. Explain this result in terms of the example above. How might things change if the border were open, with no restrictions on immigration?
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Related Book For
International Economics Theory & Policy
ISBN: 9780138002121
8th Edition
Authors: Paul R Krugman, Maurice Obstfeld
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