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Labor economics

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Assume that the demand curve for labor in country Y is w = 100 - 4E, where E is measured as millions of workers. Prior to immigration, there are 20 million workers in the country. Suppose that there is an influx of 1 million immigrants into country Y. Assuming that labor accounts for 80% of country Y's gross domestic product, calculate immigrant surplus as a share of national income.

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The solution answers the question(s) below. Labor economics immigration is examined.

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The demand curve for labor in country Y is w = 100 - 4E, where E is measured as millions of workers.
Prior to immigration, there are 20 million workers in the country.

w = 100 - 4E Substituting E=20 million we get w=wage rate =$20 ...

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