Labor-Market Effects of Migration
(Figure 15.4)

Figure 15.4 depicts the labor markets in two stylized countries: the low-income "South" and a high-income "North." When no migration is not allowed, the two markets will be at the A points. Press "Show A points" to show the points on the two graphs. In this initial situation northern workers earn $6.00 an hour and southern workers of comparable skill earn $2.00 an hour. If all official barriers to migration are removed, southern workers can go north and compete for northern jobs. If moving were costless and painless, they would do so in large numbers until they had bid the northern wage rate down and the southern wage rate up enough to equate the two.
Press "Continue" when you are ready to move on. The "Reset" button will clear the graph.