Labor Economics
8th Edition
ISBN: 9781260484434
Author: George Borjas
Publisher: Mcgraw-hill Higher Education (us)
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Question
Chapter 8, Problem 4RQ
To determine
Determine how the immigrant flow is chosen from the population of the country of origin.
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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?
Can a destination country experience both positive and negative selection in immigration at the same time? Why or Why not?
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?
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- According 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_forwardAs a result of preferences given to skilled workers by many countries, source countries are most likely to implement their own immigration quota system. encounter shortages of talented professionals. try to attract skilled professionals from other countries. prohibit emigration and foreign travel among their citizens. initiate worker training programs.arrow_forwardWhat are the effects of emigration on employment, wages, and social welfare if labor supply is not perfectly inelastic. How do the effects differ from where there is a perfectly inelastic labor supply?arrow_forward
- How might immigration impact the market for labor in the home country? how does it affects the supply of labor, the demand for labor, and equilibrium wages in the home country?arrow_forwardMigration is supposedly happen from low to high income country. In time the wage difference between host and the home country become smaller. Explain the statement above.arrow_forwardShow 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.arrow_forward
- Below is a labor market model for immigration from Mexico(figure on right) to the US (figure on left). Initial supply curves are given by Suso for the US and Smo for Mexico. Supply curves after migration are given by Sus1 and Mus1 respectively. P W b X 0 v = 42 W = 29 x = 19 Suso Sus 1 SM1 SMO P k 2D j > 3 h i a d Dus DM f g 60 0 30 40 Q 20 30 a k = 35 m = 19 n = 7 Refer to the figures above. The net gain to immigrants as a result of migration =arrow_forwardHow might the output and income gains from immigration shown by the simple immigration model be affected by (a) unemployment in the originating nation, (b) remittances by immigrants to the home country, and (c) backflows of migrants to the home country?arrow_forwardThe statements relate to immigration or inequity as it relates to immigration. Identify each statement as either true or false. Statement 1: Countries with even slightly higher standards of living should expect an influx of immigration from their neighboring countries if those countries have a lower standard of living. Statement 2: There is empirical evidence that immigration leads to large increases in unemployment, which causes wages to drop drastically. Statement 3: As a potential solution to an influx of immigration, Case, Fair, and Oster (2012) cite a study by the International Monetary Fund (IMF) stating that free trade can help to reduce inequity, thereby reducing the need for immigration. Statement 4: Immigration is a local, city‑wide concern as opposed to being a national, country‑wide concern because immigrants stay in the city where they first arrive. Statement 5: Technological change will not cause low‑skilled workers to immigrate to another country with a higher…arrow_forward
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