Introduction to Labor Economics Graphs and Tables Handout #3-Part 1

Figure D-1.1: Migration Region A Region B L W L W S D S D w1w1 L1L1 w0w0 L0L0

Figure D-1.2: Mass Migration Region A Region B L W L W S3S3 D S2S2 D w3w3 L 3 L 1 w2w2 L 0 L 2 S1S1 S0S0 w0w0 w1w1 w 3 – w 2 > w 1 – w 0 and w 1 – w 0 = Equilibrium wage differential. Movement from Region B to Region A.

Figure D-1.3: Displacement of US Workers S DOM S DOM + IMM D L W w0w0 L 2 L 0 L 1 w1w1 US Low Skill Labor Market (1)(2) (1)Displaced US Workers (2) New Workers

Figure D-1.4: Restricting Immigration by Increased Border Patrols US Market Mexican Market W L W L S0S0 S1S1 D S2S2 S3S3 D L 1 L 0 L 2 L 3 w0w0 w1w1 w2w2 w3w3

Figure D-1.5: Welfare Losses of Immigration Restrictions W L US Market D S NO RESTRICTIONS S RESTRICTIONS WL L 1 L 0 w0w0 w1w1

Figure D-1.6: Effect of Immigration on Unskilled and Skilled US Labor Market US Skilled Market US Unskilled Market L W L W S1S1 D S4S4 D w1w1 L 1 L 3 w4w4 L 0 L 4 L 2 S3S3 S0S0 w0w0 w3w3 S2S2 w2w2