LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Chapter 2, Problem 8P
(a)
To determine
Determine the effect of negative income tax (NIT) experiment on the employment rate of public assistance recipients with respect to difference-in-difference table.
(b)
To determine
Determine the effect of negative income tax (NIT) experiment on the weekly hours worked of public assistance recipients who worked positive hours during the survey week with respect to difference-in-difference table.
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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]
Suppose the number of workers in these regions in millions at a point in time t is denoted by (xti) and presented in the vector xt =[xt1…
Suppose a worker’s skill is captured by his efficiency units of labor. 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 the United States, these workers compare their weekly earnings at home ( w0) with their potential earnings in the United States (w1).The wage-skills relationship in each of the two countries is given byw0 = 700 + 0.5sandw1 = 670 + swhere s is the number of efficiency units the worker possesses.a. Assume there are no migration costs. What is the average number of efficiency units among immigrants? Is the immigrant flow positively or negatively selected?b. Suppose it costs $10 to migrate to the United States. What is the average number of efficiency units among immigrants? Is the immigrant flow positively or negatively selected?
(SW 7.10) Show that the two alternative formulas below for the homoscedasticity-only
F-statistic are equivalent.
F =
(SSRrestricted − SSRunrestricted) /q
SSRunrestricted/ (n − kunrestricted − 1) (equation 7.13 in SW)
F =
R2
unrestricted − R2
restricted
/q
(1 − R2
unrestricted) / (n − kunrestricted − 1) (equation 7.14 in SW)
Chapter 2 Solutions
LABOR ECONOMICS
Ch. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - Prob. 10RQ
Ch. 2 - Prob. 11RQCh. 2 - Prob. 12RQCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - A worker plans to retire at the age of 65, at...Ch. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Prob. 15P
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