Labor Economics
8th Edition
ISBN: 9781260484434
Author: George Borjas
Publisher: Mcgraw-hill Higher Education (us)
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Chapter 8, Problem 14P
(a)
To determine
Determine an estimate of the effect the housing voucher program has on retention at KAPC.
(b)
To determine
Explain the given statement.
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Question 2: Migration
In labour economics, we are often interested in migration of workers from one geographical region to another. Suppose we divide a hypothetical country Econland into three regions (R): R1, R2, R3. We can find the proportion of the workers of those three regions who put or migrate to another region. For instance, p12 = proportion of the workers in region 2 that move to region while p33 is the proportion of workers in region 3 who do not migrate to any of the two other regions. We can denote these transition proportions by pij , i, j = 1, 2, 3 and can state these proportions of workers that stay put or migrate to another region in terms of the transition matrix
P =[p11 p12 p13 p21 p22 p23 p31 p32 p33]
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Geoffrey is a new employee at the Boston Consulting Group where his first
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Suppose a worker's skill is captured by his efficiency units of labor. In country A,
the distribution of efficiency units in the population is such that worker 1 has one
efficiency unit, worker 2 has two efficiency units, and so on. There are 100 workers in
the population.
In deciding whether to migrate to country B, these workers compare the present value of
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