Eureka Case 25 min Economics

Whose Gain Counts?

You are Inés Arregui-Holm, rapporteur of the Costarian Parliament's working session on migration policy. On the table is a proposal to admit 50,000 more Boravian workers a year. By 18:00 on Friday, April 17, 2026, your first paper must say how heavily each affected group counts.

The situation

Costaria has 12 million people, output of about 22,000 currency units (CU) per head and an ageing population: its median age is 41. Boravia, next door, has 14 million people, a median age of 27 and about CU 6,500 per head. Some 200,000 Boravians already work in Costaria and send home CU 1.4 billion a year. A construction labourer earning CU 2.20 an hour in Boravia earns about CU 8 in Costaria.

The session's dashboard shows the proposal as tabled. Costaria's output would rise by about CU 530 million a year in the short run. Average native wages would barely move; for low-skill Costarians doing the same jobs as the arrivals, published estimates run from close to zero to a loss of 3–4%. The migrants themselves would gain about CU 600 million a year and send home about CU 130 million more. The public accounts, the receiving cities and Boravia's clinics come with the second paper.

The positions arrived hardened. Bruno Saldaña, of the Construction Federation, brings 42,000 unfilled vacancies and a warning about pensions. Rosa Quintana-Lenz, of the construction union, answers that real wages on site have been flat for six years: "We are not against the Boravians. We are for the people already on the site." Aurel Vescan, Boravia's Deputy Minister of Health, writes that his country loses 40% of its newly trained nurses within five years. On Sunday two newspapers ran opposing editorials, and both quoted reputable economists.

You spent twelve years running the labour-force survey, and you represent the coastal city where most arrivals settle. Both blocs accepted you as rapporteur because you have never cast a vote on migration. Your first paper sets four weights, in multiples of 5 that total 100: Costarian employers, Costarian native workers, Boravian migrants and the families who stay in Boravia. The draft reads 25 in every cell.

Your job in this case: sort the effects by size and by who receives them, test how much each assumption weighs in the arithmetic, and decide which weights you sign in the first paper.

The decision

Which weights do you sign in the first paper?

  • A · Costarians first: 40 / 40 / 10 / 10
  • B · The people on site first: 15 / 55 / 15 / 15
  • C · Equal standing for all four: 25 each

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