The Economics of Immigration 2nd Edition by Cynthia Bansak

Exercise 3

Suppose a destination country adopts a policy that guarantees all residents, including immigrants, a minimum income well above the current lowest income in that country. How will this affect the direction of selection and the number of immigrants if (a) immigration is positively selected, or (b) immigration is negatively selected? Assume that the earnings distribution in the origin and migration costs do not change. Include a diagram with each part of your answer.