Assume that there are two markets for labor: the market for high-school graduates (unskilled labor) and the market for college graduates (skilled labor). Using a set of supply and demand curves for each labor market, show the impact on the college wage premium of

a) a state initiative that cuts back funding for public universities, leading to higher tuition fees;

b) an outsourcing of unskilled manufacturing jobs to overseas locations;

c) illegal immigration of “day” laborers into the United States;

d) a recession, which reduces the opportunity cost of attending college; and

e) a federal budget initiative to give “everyone” a college education through generous grants programs.