Questions from Labor Economics

Q: Consider the Roy model of potential immigrant flows as discussed in the

Consider the Roy model of potential immigrant flows as discussed in the chapter. a. Why is it that a source country can experience both an outflow of low-skill workers and an outflow of high-skill wor...

Q: Suppose high-wage workers are more likely than low-wage

Suppose high-wage workers are more likely than low-wage workers to move to a new state for a better job. a. Explain how this migration pattern can be due solely to differences in the distribution of w...

Q: Patrick and Rachel live in Seattle. Patrick’s net present value of

Patrick and Rachel live in Seattle. Patrick’s net present value of lifetime earnings in Seattle is $125,000, while Rachel’s is $500,000. The cost of moving to Atlanta is $25,000 per person. In Atlanta...

Q: Labor demand for low-skilled workers in the United States is

Labor demand for low-skilled workers in the United States is w = 24 - 0.1E where E is the number of workers (in millions) and w is the hourly wage. There are 120 million domestic U.S. low-skilled work...

Q: Suppose the United States enacts legislation granting all workers, including newly

Suppose the United States enacts legislation granting all workers, including newly arrived immigrants, a minimum income floor of ̲̲ y dollars. (Assume there is positive selection of migrants from the...

Q: In the absence of any legal barriers on immigration from Neolandia to

In the absence of any legal barriers on immigration from Neolandia to the United States, the economic conditions in the two countries generate an immigrant flow that is negatively selected. In respons...

Q: There are two reasons why the immigration surplus is greater when immigration

There are two reasons why the immigration surplus is greater when immigration is accompanied by human capital externalities compared to when there are no human capital externalities associated with im...

Q: In addition to it being illegal to enter the U.S

In addition to it being illegal to enter the U.S. without a visa or to over-stay one’s visa, it is also illegal for U.S. employers to hire undocumented or “illegal” immigrants. Meanwhile, federal U.S....

Q: Under 2001 tax legislation enacted in the United States, all income

Under 2001 tax legislation enacted in the United States, all income tax filers became eligible to deduct from their total income half of the expenses incurred when moving more than 50 miles to accept...

Q: Feeling that local firms follow discriminatory hiring practices, a nonprofit firm

Feeling that local firms follow discriminatory hiring practices, a nonprofit firm conducts the following experiment. It has 200 white individuals and 200 black individuals, all of whom are similar in...