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

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 WSJ story as just described.