Review the areas of gain and loss to different groups in Figure 15.4. Why do the migrants gain only areas e and f ? Why don’t they each gain the full southern wage markup (\($3.20\) − \($2.00\))? Why don’t they each gain (\($5.00\) − \($2.00\))?

Data From Figure 15.4

Transcribed Image Text:

FIGURE 15.4 Labor-Market Effects of Migration Wages ($ per hour) 6.00- Wages ($ per hour) Sn North South b B 5.00- 90 90 Dn 3.20- d 2.00- B S,+Smig Ds Workers 100 110 0 70 82 90 (millions) m m Workers (millions)