Professional Documents
Culture Documents
Introduction to
the Economics of Immigration
Destination Country
Immigrants
Costs of Moving
transport costs
dangers of the voyage
time of travel
lost income during move
Pull factors
higher wages
employment
property rights
personal freedom
economic freedom
civil rights
law and order
peace
religious freedom
educational opportunity
social mobility
lower taxes
Stay away factors
language barriers
cultural barriers
discrimination
low social status
unemployment
low wages
lack of political rights
unfamiliarity
uncertainty
war
crime
Wage
VMPL
0
Labor
Wage
SL
VMPL
0
Labor
Wage
SL
A
A
a
B
VMPL
0
Labor
Wage
Morocco
Wage
France
SL
VMPL
10
SL
2
0
VMPL
100
50
Figure 15.7
The Labor Markets in Morocco and France
Morocco
Wage
France
S
10
8
S
VMPL
VMPL
75
100
50
75
Morocco
Wage
France
S
D
10
8
S
3
2
VMPL
F
e
g
f
VMPL
h
75
100
50
75
Figure 15.8
Distinguishing the Gains and Losses from
Immigration in Morocco and France
Morocco
Wage
France
S
D
10
8
S
GG
VMPL
HH
F
e
gg
f
VMPL
hh
75
100
50
75
Figure 15.9
The Gains and Losses of Output After Immigration
Morocco
Wage
France
S
D
10
8
S
EE
G
VMPL
S
F
e e
VMPL
h
75
100
50
75
Wage
Morocco
Wage
France
S
10
VMPL
g
f
G
G
d
3
2
D
D
EE
VMPL
h
75
100
50
75
loss of e + g
gain of e
loss of g
- 87.50
+ 75.00
- 12.50
2. France:
Workers originally in France:
Owners of other (nonlabor) factors:
Net change in real income:
loss of E
gain of E + G
gain of G
- 100.00
+ 125.00
+ 25.00
3. Immigrants:
Loss of wages in Morocco
Gain of wages in France
Net change in real income:
loss of h
gain of H
gain of (H - h)
- 50.00
+ 200.00
+ 150.00
World (1 + 2 + 3):
Net change in Moroccan real income:
loss of g
Net change in French real income:
gain of G
Net change in immigrants real income:
gain of (H-h)
Net gain:
gain of (H+G) - (h+g)
- 12.50
+ 25.00
+ 150.00
+$162.50