LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Question
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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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 costsÂ
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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Similar questions
- How would you expect immigration by primarily low-skill workers to affect American low-skilled workers?arrow_forwardWhat factors can explain the relatively small effect of low-skilled immigration on the wages of low-skilled workers?arrow_forwardHave levels of immigration to the United States been relatively high or low in recent years? Explain.arrow_forward
- If immigration is reduced, what is the impact on the wage for low-skilled labor? Explain.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_forwardQUESTION 5. The approach by Borjas (2003) on evaluating the effects on immigration ignores: (a) Cross-wage effects. (b) Real-wage effects. (c) Efficiency-wage effects. (d) Own-wage effects.arrow_forward
- Measured in absolute numbers, the level of immigration during the 1990s into the United States was compared with the levels of previous decades. When considered as a percentage of the population at the time, the level of immigration into the United States during the 1990s was_ decades of the twentieth century. than the levels experienced during the earlier O lower, higher O lower, lower O higher, lower O higher, higherarrow_forwardExplain briefly how the effects of immigration may differ across different subpopulations of the U.S. labor market.arrow_forward
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