Final answer:
The simple immigration model indicates that worker migration impacts both source and destination countries, contributing to increases in production and consumption. However, immigration can also lead to wage suppression for domestic low-skilled workers, demonstrating the multifaceted effects of immigration.
Step-by-step explanation:
The simple immigration model in economics helps us understand the impact of worker migration on both source and destination countries. When we consider a scenario where immigrants possess similar characteristics to the host country's population, the immigrants contribute to an overall increase in production and consumption. Over time, assuming proper integration, there would be minor changes to the job market, income distribution, taxes, and public services, as the effects of such immigration would be akin to a marginal population growth.
However, immigration can also have disruptive effects, particularly in labor markets where the influx of low-skilled workers could depress wages for domestic workers. In such situations, studies, like the one by Michael S. Clune, show that native low-skilled workers might reduce their work hours and face lowered wages. This highlights how immigration can have nuanced impacts on different segments of the economy, underscoring the complexity of formulating immigration policies.