Immigration Impacts 7. Suppose that after an influx of immigrants, labor supply in the market for...
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Immigration Impacts 7. Suppose that after an influx of immigrants, labor supply in the market for low-skilled workers is now given by Es = 30w 180. Labor demand is still Ep = 300 10w. The government decided against imposing a minimum wage and the market wage is freely determined by labor supply and demand. (a) Are the immigrants perfect substitutes or complements for native low-skill labor? [2 pts] (b) Plot the original market equilibrium along with the new labor supply curve on the plot [2 pts] below, labeling it Es. W 30 25 20 15 10 5 tens of 0 5 10 15 20 25 30 35 E (millions) 1.png (c) What is the equilibrium wage rate and employment level in the market for low-skilled labor [2 pts] after the influx of immigrants? (d) How many native workers are employed now? (e) Calculate the new native firm and native worker surplus. Label these on your plot. [2 pts] [2 pts] (f) What is the change in total surplus as a result of this immigration wave? [2 pts] Immigration Impacts 7. Suppose that after an influx of immigrants, labor supply in the market for low-skilled workers is now given by Es = 30w 180. Labor demand is still Ep = 300 10w. The government decided against imposing a minimum wage and the market wage is freely determined by labor supply and demand. (a) Are the immigrants perfect substitutes or complements for native low-skill labor? [2 pts] (b) Plot the original market equilibrium along with the new labor supply curve on the plot [2 pts] below, labeling it Es. W 30 25 20 15 10 5 tens of 0 5 10 15 20 25 30 35 E (millions) 1.png (c) What is the equilibrium wage rate and employment level in the market for low-skilled labor [2 pts] after the influx of immigrants? (d) How many native workers are employed now? (e) Calculate the new native firm and native worker surplus. Label these on your plot. [2 pts] [2 pts] (f) What is the change in total surplus as a result of this immigration wave? [2 pts]
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a The immigrants are perfect substitutes for native lowskill labor This is because the labor supply curve for immigrants Es is a linear function of th... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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