Labor Economics
8th Edition
ISBN: 9781260484434
Author: George Borjas
Publisher: Mcgraw-hill Higher Education (us)
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Question
Chapter 8, Problem 5P
(a)
To determine
Determine how the welfare programs influence the incentive to migrate to Country U in terms of Roy model.
(b)
To determine
Determine the impact of the welfare program on the selection of the immigrant flow.
(c)
To determine
Identify the worker who is most likely to be attracted by the welfare program.
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Suppose the United States enacts legislation granting all workers, including newly arrived immigrants, a minimum income floor of y dollars. (Assume there is positive selection of migrants from the home country to the United States.)a. Generalize the Roy model to show how this type of welfare program influences the incentive to migrate to the United States. Ignore any issues regarding how the welfare program is funded.b. Does this welfare program change the selection of the immigrant flow? In particular, are immigrants more likely to be negatively selected than in the absence of a welfare program?c. Which types of workers, the highly skilled or the less skilled, are most likely to be attracted by the welfare program?
Would a massive, nationwide cessation of all welfare programs force the indolent to work?
Labor economics
What is positive/negative selection of migrants? What determines whether migrants are positive
selected?
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