The Economics of Immigration 2nd Edition by Cynthia Bansak

Exercise 1

Explain how a decrease in the return to skill in the origin affects the direction of selection and the number of immigrants if (a) immigration is positively selected, or (b) immigration is negatively selected. Assume that the return to skill in the destination and migration costs do not change. Include a diagram like Figure 4.2 with your answer that shows the effects of the decrease in the return to skill in the origin.