Microeconomics 20th Edition by McConnell, Sean Flynn, Stanley Brue

Exercise 7

In July 2007 The Wall Street Journal (WSJ)reported that a growing shortage of skilled labor in Eastern European countries such as Slovakia was driving up wages in key industries and reducing business income. The reason for the shortages was a large migration of skilled Eastern European workers to Western European countries. Use the simple immigration model to demonstrate the key elements of the WSF story as just described.