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The politicians in the Destination country are worried about the large number of immigrants that they have been receiving. To reduce the number of immigrants,

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The politicians in the Destination country are worried about the large number of immigrants that they have been receiving. To reduce the number of immigrants, they have decided that they will introduce a visa fee that migrants would need to pay upon entering the destination country. a. The government is deciding how much charge for the visa fee and is currently considering two prices, $1 or $2. Assuming that the goal of the government is to maximize the total revenue that they obtain from the visa fee, which of these two prices would you recommend? You can keep assuming that, if a person is indifferent between moving and staying, the person will stay in the origin country. Assume that years of schooling in the origin country are distributed according to the following table: That is, there is 1 person with 3 years of schooling, 2 persons with 4 years of schooling, etc. b. How many people would move under the situation described in part a? For this calculation, you can assume that, if a person is indifferent between moving and staying, the person will stay in the origin country. c. Under the situation described in part a, what would be the value of the Net Difference Index (NDI) comparing the education of immigrants versus the education of stayers from the origin country? You can keep assuming that, if a person is indifferent between moving and staying, the person will stay in the origin country. Wages in the origin country are given by: w0=1+2s Wages in the destination are given by: wd=7+1s. where s are years of schooling. There is no cost of moving from the origin to the destination. a. How many years of schooling do you need to have so as to be indifferent between staying in the Origin country and moving to the Destination country? Are immigrants from the Origin to the Destination positively or negatively selected with respect to years of schooling? Explain

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