Suppose the wage difference is $20, then equilibrium migration is 100. Now suppose the rich country imposes costs, making it harder to get in. (Trump’s wall.) Suppose have to pay $10 to a smuggler to get in. What happens to immigration? But then what happens if the wage difference goes above $20? about the refugee crisis in Let’s talk Europe. Suppose the supply of migrants looks like this:
Suppose the wage difference is $20, then equilibrium migration is 100. Now suppose the rich country imposes costs, making it harder to get in. (Trump’s wall.) Suppose have to pay $10 to a smuggler to get in. What happens to immigration? But then what happens if the wage difference goes above $20? Let’s talk about the refugee crisis in Europe. Suppose the supply of migrants looks like this: