Question 1. Recent evidence (see graph) suggests that the stock of immigrants in the UK fell by more than 1million people in 2020.referendum. More than 1m migrants appear to have left the UK in the first 9 months of 2020 Estimated cumulative change in UK migrant population Coos) -EU-born -Non-EU-born 400 200 0 -200 -400 -600 T 2018 2019 2020 Source: The Migration Observatory OFT A. Use diagrams to illustrate and explain the effects of this outflows of EU non-EU workers for output, employment, wages and rentals in the UK in the short- and in the long-run. (50 marks) B. One potential reason for this outflow is a drop in real wages for immigrants in the UK. How does a decrease in the average wage rate in the UK affect the selection of EU and non-EU migrants who decide to remain in the UK? Assume the wages in the EU are more equally distributed than in the UK, while non-EU migrants come from countries with more unequal labour markets than the UK. (50 marks) 2 Question 1. Recent evidence (see graph) suggests that the stock of immigrants in the UK fell by more than 1million people in 2020.referendum. More than 1m migrants appear to have left the UK in the first 9 months of 2020 Estimated cumulative change in UK migrant population Coos) -EU-born -Non-EU-born 400 200 0 -200 -400 -600 T 2018 2019 2020 Source: The Migration Observatory OFT A. Use diagrams to illustrate and explain the effects of this outflows of EU non-EU workers for output, employment, wages and rentals in the UK in the short- and in the long-run. (50 marks) B. One potential reason for this outflow is a drop in real wages for immigrants in the UK. How does a decrease in the average wage rate in the UK affect the selection of EU and non-EU migrants who decide to remain in the UK? Assume the wages in the EU are more equally distributed than in the UK, while non-EU migrants come from countries with more unequal labour markets than the UK. (50 marks) 2