Labor-Market Effects of Migration
(Figure 14.4)

Southern employers lose profits by having to offer higher wage rates. The southern employers' loss of surplus is area d + e. (They lose surplus because they are buyers of now higher-price labor, just as consumers as buyers of products lose surplus when the product price increases.) Press "Show southern employers' loss" to show these areas on the graph. Employers in the North gain, of course, from the extra supply of labor. Having the northern wage rate bid down from $6.00 to $5.00 brings them area a + b in extra surplus. Press "Show northern employers' gain" to show this area on the graph. Workers already in the North lose area a by having their wage bid down. Press "Show native northern employees' gain" to show this area on the graph.

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