Arizona (AZ) immigration restrictions in the short run and long run. Suppose native-born workers and immigrants...

Arizona (AZ) immigration restrictions in the short run and long run. Suppose native-born workers and immigrants are equally productive and work in perfectly competitive labor markets, with perfect information and free mobility of labor between US states. AZ voters decide to ban employment of immigrant workers. As a result, immigrants immediately leave AZ and find jobs in other US states. a. Use a supply and demand diagram to show the short run impact of the exit of immigrant workers from the AZ labor market (assume there is one labor market for all of AZ). b. According to your diagram, what happens to the wage rate and overall employment level in AZ in the short run? Explain in one or two sentences. c. What will happen to employment and wages in the AZ labor market in the long run? Explain.

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Rahul Sunny answered 2 years ago

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