LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Question
Chapter 8, Problem 10P
(a)
To determine
Determine the effect of the given policy on the immigrant flow.
(b)
To determine
Graphically illustrate the extent that this policy will limit the brain drain.
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- The 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_forwardBelow 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_forwardExplain briefly how the effects of immigration may differ across different subpopulations of the U.S. labor market.arrow_forward
- True or False. Research indicates that immigration causes large decreases in the average American wage.arrow_forwardIs there an economic basis for the hostility towardunauthorized immigrants?arrow_forwarda)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?arrow_forward
- Suppose the labor market is segmented into two distinct markets: the market for low-skill workers and the market for high-skill workers. Furthermore, suppose the competitive equilibrium wage in the low-skill market is $7.00/hour, while the competitive equilibrium wage in the high-skill market is $20.00/hour. If the minimum wage is set at $10.00/hour, which market will exhibit the greatest amount of unemployment? Demonstrate it graphically.arrow_forwardMany MNCs locate in cities and hence cause many migrants to move from the countryside. What is this process called? A) Rural-deficiency B) Rural-urban migration C) Urban flows D) Urban crowding.arrow_forwardA 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_forward
- True or False. The MB = MC level of immigration is likely to be achieved if we simply let in every person who wishes to immigrate to the United Statesarrow_forwardImmigration and Labor Market Equilibrium Consider two distinct labor markets in two provinces, Gaziantep and Trabzon. Initially, the “native” wage ?? is the same in both provinces, with equilibrium occurring at the intersection of labor supply and demand curves in each of the provinces. Suppose that Gaziantep receives an influx of Syrian immigrants. Assume that immigrants and natives are “perfect substitutes” in production. Immigration between the two provinces is not allowed, but it is costless for the firms to move between Gaziantep and Trabzon. Describe the new equilibrium in the labor market for natives in each of the provinces using labor supply and demand curves. Explain your reasoning. THE ANSWER SHOULD BE VERY CLEAR AND DETAİLED, THANK YOU!!!arrow_forwardPatagonia primarily markets its heavy duty ski jackets to people living in the Northern Midwest and Rocky Mountain areas since people in the southern US don't experience the sort of cold weather conditions Patagonia's ski jackets are designed to withstand. In this case, Patagonia is probably using segmentation to decide where to market its ski jackets. A Demographic Psychographic C Geographic D Benefits Barrow_forward
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