Question: Consider the Roy / Borjas model of immigrant selection. The destination country is interested in increasing the number of immigrants that it receives. To do

Consider the Roy/Borjas model of immigrant selection. The destination country is interested in increasing the number of immigrants that it receives. To do so, it decides to introduce a migration subsidy, such that migration costs would decrease from 15 to 10. Such policy would affect the number and selection of immigrants in the same way as if: a. Wages in the destination for those with no education (that, is for those with s=0) decreased by 5 b. Wages in the destination for those with no education (that, is for those with s=0) increased by 5

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