The Economics of Immigration 2nd Edition by Cynthia Bansak

Exercise 3

Suppose the South Korean government further tightens border security, making it even more difficult for North Korean immigrants to enter South Korea. Illustrate the effects on the immigration model (Figure 7.2). Show the effects on wages in North and South Korea, the number of immigrants and the number of workers in each country. Also label the welfare effects for each country and additional deadweight loss due to increased border security.