Introduction to Labor Economics

Graphs and Tables

Handout #3-Part 1

Figure D-1.1: Migration

Region A Region B

L

W

L

WS

D

S

D

w1

L1

w0

L0

Figure D-1.2: Mass Migration

Region A Region B

L

W

L

WS3

D

S2

D

w3

L3 L1

w2

L0 L2

S1 S0

w0w1

w3 – w2 > w1 – w0 and w1 – w0 = Equilibrium wage differential. Movement from Region B to Region A.

Figure D-1.3: Displacement of US Workers

SDOM

SDOM + IMM

D

L

W

w0

L2 L0 L1

w1

US Low Skill Labor Market

(1) (2)

(1) Displaced US Workers(2) New Workers

Figure D-1.4: Restricting Immigration by Increased Border Patrols

US Market Mexican Market

W

L

W

L

S0

S1

D

S2

S3

D

L1 L0L2 L3

w0

w1

w2w3

Figure D-1.5: Welfare Losses of Immigration Restrictions

W

L

US Market

D

SNO

RESTRICTIONS

SRESTRICTIONS

WL

L1 L0

w0

w1

Figure D-1.6: Effect of Immigration on Unskilled and Skilled US Labor Market

US Skilled Market US Unskilled Market

L

W

L

WS1

D

S4

D

w1

L1 L3

w4

L0 L4 L2

S3 S0

w0w3 S2

w2