Chapter 22 – Immigration
24. Suppose that Rosa is considering migration to another country. To move, she will have to
spend $5000 on transportation and $4000 in application and other processing fees. Rosa’s
stream of future earnings in her home country is $500,000. She expects to earn a stream of
future earnings of $800,000 in another country. Based on this information, Rosa’s implicit
cost of migrating is:
25. Suppose that Rosa is considering migration to another country. To move, she will have to
spend $5000 on transportation and $4000 in application and other processing fees. Rosa’s
stream of future earnings in her home country is $500,000. She expects to earn a stream of
future earnings of $800,000 in another country. Based on this information, Rosa’s explicit cost
of migrating is: