In 2012, almost 10.5 million Filipinos were working overseas under permanent or fixed-term con- tracts. In recent years, many skilled Filipinos are emigrating out of the country. Experts refer to this phenomenon as "brain drain".

a) Draw the labor market graph for skilled labor, illustrating the equilibrium before and after the emigration of skilled workers, and predict the effects on employment, real wages, and national output. b) Draw the labor market graph for unskilled labor, illustrating the equilibrium before and after the emigration of skilled workers, and predict the effects on employment, real wages, and national output. c) State whether the wage skill premium increases or decreases.