LABOR ECONOMICS LOOSE PRINT UPGRADE
20th Edition
ISBN: 9781264115211
Author: BORJAS
Publisher: MCG
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Chapter 8, Problem 13P
(a)
To determine
Determine how the given policy affects the skill distribution of immigrants to the U.S and the age-earning profile of immigrants in the U.S.
(b)
To determine
Graphically illustrate why the demographer’s conclusions are sensitive to cohort effects.
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The last three decades in the United States have been characterized by a very wide gap between the wages of those with more education and those with less. Suppose that workers eventually adjust to this gap by investing more in education, with the result that the wages of less skilled workers rise faster than those of the more-skilled (so that the wage gap between the two falls). How would a decline in the wage gap between the skilled and the unskilled affect immigration to the United States?
Show how workers who wish to maximize the present value of lifetime earnings calculate the net gains to migration, and discuss how this net gain depends on incomes in the states of origin and destination and on migration costs.
a)How the following factors influence the present value of net benefits of migration.
i) Transportation costs
b) If the elasticity of demand for type Z workers is -0.5, then an increase of wage rate from $45 to $55 will cause the quantity demanded to fall by _____ percent.
c) What is the difference between geographic labour mobility and occupational labour mobility?
Chapter 8 Solutions
LABOR ECONOMICS LOOSE PRINT UPGRADE
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- What factors can explain the relatively small effect of low-skilled immigration on the wages of low-skilled workers?arrow_forwardHave levels of immigration to the United States been relatively high or low in recent years? Explain.arrow_forwardIn 2021 the number of registered migrant workers is decreasing. Why do you think it happen?arrow_forward
- A country with a strict immigration policy is now considering relaxing its policy to permit and encourage immigration in view of its growing aged population. How do the characteristics of immigrants influence the effects of immigration on the receiving country? What are the implications for the receiving country's government policy toward immigration?arrow_forwardMeasured in absolute numbers, the level of immigration during the 1990s into the United States was compared with the levels of previous decades. When considered as a percentage of the population at the time, the level of immigration into the United States during the 1990s was_ decades of the twentieth century. than the levels experienced during the earlier O lower, higher O lower, lower O higher, lower O higher, higherarrow_forwardQUESTION 5. The approach by Borjas (2003) on evaluating the effects on immigration ignores: (a) Cross-wage effects. (b) Real-wage effects. (c) Efficiency-wage effects. (d) Own-wage effects.arrow_forward
- Explain briefly how the effects of immigration may differ across different subpopulations of the U.S. labor market.arrow_forwardPlease solve both questions number 5 and 6 . I will definitely give you thumbs up . Thank youarrow_forwardHow the following factors influence the present value of net benefits of migration. i) Interest rate ii) Earnings from existing job iii)arrow_forward
- If occupation A pays more than occupation B, as long as there is a movement between the occupations, the wage rate between the two occupations will get closer together. True Falsearrow_forwardCompared with the share of workers in most other high-income countries, is the share of U.S. workers whose wages are determined by union bargaining higher or lower? Why or why not?arrow_forwardAccording to the chapter 1 of Healey's book, economics and the movement of jobs and opportunity from place to place is the key understanding contemporary immigration. True Falsearrow_forward
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