Question
In the standard model of the labor market impact of immigration (i.e., with downward sloping labor demand), emigration out of a source country will cause:
In the standard model of the labor market impact of immigration (i.e., with downward sloping labor demand), emigration out of a source country will cause:
1) Lower wages for workers in the origin and lower surplus for owners of other factors of production in the origin
2)Higher wages for workers in the origin, but also higher surplus for owners of other factors of production in the origin
3)It depends on whether labor supply is inelastic or upward sloping
4)Lower wages for workers in the origin, but higher surplus for owners of other factors of production in the origin
5)Higher wages for workers in the origin, but lower surplus for owners of other factors of production in the origin
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