Assuming migration is unimpeded and costless, which of the following statements is most accurate about the effect of immigration on wages in both the origin and destination nations?
A. Wages will rise in the origin nation and fall in the destination nation, and overall wage
income must rise.
B. Wages will rise in both nations, and overall wage income must rise.
C. Wages will rise in the origin nation and fall in the destination nation, and the wage changes
must cancel each other, resulting in no net change in overall wage income.
D. Wages will rise in the origin nation and fall in the destination nation, but the effect on
overall wage income depends on the elasticities of labor demand.
Answer: D
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