What are the migration costs from moving to puerto rico


Problem

The present value of working in Puerto Rico is PVPR = (1 + r)WPR/r, and the present value of working in the U.S. is PVUS = (1 + r)WUS/r. Suppose WUS = $46,000, WPR = $21,000, and r = 0.05. For a Puerto Rican who is indifferent between working in the U.S. and working in Puerto Rico, what are the migration costs from moving to Puerto Rico to the U.S.?

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Microeconomics: What are the migration costs from moving to puerto rico
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