4

Considering the effect of the policy change: Does this policy (in Part (b)) change the overall nature of selection of the immigrant flow to NZ? Which types of workers (the highly skilled or the less skilled) are most likely to be attracted by the welfare program? Would the selection threshold change or remain the same, and what is the implication of this expected outcome? Discuss in a few sentences and refer to your diagram in Part (b). (8 marks)