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Peregrinus Peregrinus
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6 years ago
One immigrant to country X increases his wage from $13,000 (in their home country) to $15,000. There are no costs to moving. A native worker was earning $15,000. However, the immigrant replaces him and the native instead lives and works at home, which he values at $15,000. Which of the following statements is true?
A) Country X (not counting the immigrant) is better off.
B) The native worker is worse off.
C) The immigrant could be taxed $1000 with the proceeds going to the native worker and the employer so that everyone is better off (compared to no immigration).
D) The net benefit of this immigration to everyone (native worker, employer, immigrant) is zero.
Textbook 
Modern Labor Economics: Theory and Public Policy

Modern Labor Economics: Theory and Public Policy


Edition: 12th
Authors:
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