1. Factors contributing to a migration-induced shift of the local labor demand schedule: 1.The migrants may possess better skills, more inventiveness, and greater innovative talents than the population of the receiving area. In short, the average migrant may embody more human capital than the average indigenous resident in the form of education, accumulated skills, or entrepreneurial talent. Since we have some evidence that the better-educated are more highly represented in migration streams, we have some evidence to support this possibility. VMP=MPP x P ₀

2. 2. Apart from their human capital, migrants may own physical and financial capital that they bring with them. This would cause the marginal product of the marginal worker to increase (due to the increased stock of capital and perhaps due to the increased investment resulting from an increase in supply of loanable funds). 3. Migrants may possess sources of income other than their labor services. Today over 1/3 of U.S. personal income is from sources other than wage and salary income.

3. 4. Borts and Stein have stressed the idea that migrants caused increased investment in receiving localities. This investment could be in the form of housing and social infrastructure, for example. This is an issue where some good work is empirically implementable and would be valuable. 5. Migrants may influence the price of locally provided goods and services due to the changed demands they may cause for such goods and services. Certain migrants, such as retired persons, may even affect the demand for locally produced goods and services without affecting the supply of labor.

5. Labor0 W US W' US WeWe D US S US S' US S'' US D' US D'' US ca e b d y x t v u z s m r Wage Rate