LABOR ECONOMICS
LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
Question
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Chapter 8, Problem 13P

(a)

To determine

Determine how the given policy affects the skill distribution of immigrants to the U.S and the age-earning profile of immigrants in the U.S.

(b)

To determine

Graphically illustrate why the demographer’s conclusions are sensitive to cohort effects. 

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Students have asked these similar questions
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?
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?
Show 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.
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