Labor-Market Effects of Migration
(Figure 14.4)

Those who decide to migration earn $5.00 an hour in the North, but it is worth only as much as $3.20 in the South because of the costs and drawbacks of working in the North. To measure their net gain, we take the area above the migrants' labor supply curve between the old and new wage rates ($2.00 and $3.20), or areas e and f. Press "Show migrants' gain" to show these areas on the graph. Workers who remain in the South, whose labor supply curve is Sr, gain because the reduction in competition for jobs raises their wage rates from $2.00 to $3.20. We can quantify their gains as sellers of labor with a standard surplus measure, area d, in the same way used to quantify the gains to producers as sellers of their products in previous chapters. Press "Show remaining workers' gain" to show this area on the graph.

Press "Continue" when you are ready to move on. The "Reset" button will clear the graph.