LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Question
Chapter 8, Problem 5RQ
To determine
Determine how the immigrant flow is chosen from the population of the country of origin.
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is there a gap between the mean earnings for male and female recent college graduates?
The figure below shows the proportion of children in earnings quantile conditional on their father's earnings quantile in the US and Denmark,
respectively. Based on this information, which of the following statements is correct?
US
I Child in poorest 20%
I Child in richest 20%
DENMARK
0.400
0.4
0.4
0.360
0.337
0.3
0.3-
0.253
0.2
0.2
0.167
0.161
0.098
0.1
0.1
0.074
Poorest 20%
Richest 20%
Poorest 20%
Richest 20%
Father's earnings quintile
Select one:
O a. In Denmark, it is far more difficult for the richest families to preserve their status for the next generation than in the US.
O b. In the US, 7.4% of those from the poorest 20% of families managed to move up to become part of the richest 20%.
O c. The figure suggests that there is very little governments can do to reduce intergenerational transmission of economic status.
O d. The data provides support for the "American Dream", a term coined in 1931 by James Truslow Adams that refers to "a dream of social
order in which each man and…
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?
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Similar questions
- Discuss how upward-sloping age-earnings profiles can elicit more effort from workers.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_forwardThe crowding model of occupational discrimination suggests that occupational segregation results in Multiple Choice a lower domestic output than would otherwise be the case. higher levels of total employment than would otherwise be the case. higher interest rates in the private sector than would otherwise be the case. a higher rate of inflation than would otherwise be the case.arrow_forward
- How the following factors influence the present value of net benefits of migration. i) Interest rate ii) Earnings from existing job iii)arrow_forwardList the six factors that can explain a variance in earnings. Select ONE factor and list two reasons why this you believe this factor has the most influence in wage differences. Why is the price elasticity of supply different for low mobility workers and high mobility workers? In proving that there are earnings differentials caused by discrimination, what three factors are necessary in a study conducted to prove this point?arrow_forwardThe labor demand and supply data in the following table relate to a single occupation. Use them to answer the questions that follow. Base your answers on the taste-for-discrimination model. a. Plot the labor demand and supply curves for Hispanic workers in this occupation.b. What are the equilibrium Hispanic wage rate and quantity of Hispanic employment? c. Suppose the white wage rate in this occupation is $16. What is the Hispanic-to-white wage ratio?d. Suppose a particular employer has a discrimination coefficient d of $5 per hour. Will that employer hire Hispanic or white workers at the Hispanic-white wage ratio indicated in part c? Explain.e. Suppose employers as a group become less prejudiced against Hispanics and demand 14 more units of Hispanic labor at each Hispanic wage rate in the table. What are the new equilibrium Hispanic wage rate and level of Hispanic employment? Does the Hispanic-white wage ratio rise or fall? Explain.f. Suppose Hispanics as a group increase their labor…arrow_forward
- What were some explicitly discriminatory acts and policies in Canadian immigration history? Provide at least two examples.arrow_forwardExplain why comparing educational attainment across immigrant generations and across countries of origin is complicated and can lead to misleading estimaes of intergenerational mobility?arrow_forwardEmpirical studies show that the average woman earns $0.80 for every dollar earned by the average man, after controlling for age and education. Further, the average woman earns $0.92 for every dollar earned by the average man after controlling for occupation . The conclusion is made that occupational choice reduces the wage gap 12 cents and discrimination is left to explain the remaining 8 cents. a) Explain why discrimination may explain more than 8 cents of the 20 cent differential (and occupational choice may explain less than 12 cents of the differential). b) Explain why discrimination may explain less than 8 cents of the 20 cent differential.arrow_forward
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