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graphical analysis to show the gains and losses resulting from the migration of population from a low-income country to a high-income country

Use graphical analysis to show the gains and losses resulting from the migration of population from a low-income country to a high-income country. Explain how your conclusions are affected by (a) unemployment, (21) remittances to the home country, (c) backflows of migrants to their home country, and (d) the personal characteristics of the migrants. If the migrants are highly skilled workers, is there any justification for the sending country to levy a "brain drain" tax on emigrants?

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Labor supply to high income country increases while labor supply in the low-income country decreases. Wages in two countries become equal. The output and business income of the receiving country increases while that of sending country decreases. Overall world output increases.

(a) If the migrant remains unemployed after migration, the gains to the receiving country ...

Solution Summary

This post shows the gains and losses resulting from the migration of population from a low-income country to a high-income country.

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