Question

Show graphically how immigration could effect wages and employment for native workers under each of the following:

1) Classic story – one labor market, one wage

2) Alternate story 2: two cities with separate labor markets… immigrants flood suddenly into one city

3) Alternate story 3: Two labor markets (skilled and unskilled) and both markets a complimentary (higher employment in either market increases productivity in the other)… employers do not care about immigrant vs. native only skill level. There is a sudden influx of skilled immigrant laborers.

Answer 1

Question number 1 and 2 have been answered.