Economics 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 Swas 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.