Labor-Market Effects of Migration
(Figure 14.4)

The analysis in Figure 14.4 shows some clear and perhaps unexpected effects on the well-being of entire nations. The North gains in standard economic terms-the gain to employers (and the general public buying their products) clearly outweighs the loss to the "native" workers. Area b is the net gain. Press "Show net gain to the North" to show this area on the graph. The South clearly loses. Employers' losses of d + e exceed workers' gain of d. Therefore the net loss in the South is area e. Press "Show net loss to the South" to show this area on the graph. The world as a whole gains because freedom to migrate sends people toward countries where they will make a greater net contribution to world production.

The "Reset" button will clear the graph.