Who will migrate to the united states

Assignment Help Business Economics

Reference no: EM13157614

Assume that the wage-skill level relationship in oneâ€^TMs home country W(H) and in the United States W(US) is given by the equations below.

W(H) = 500 + 2S

W(US) = 325 + 2.5S,

where W is the wage and S is the skill level.

a. By making reference to a numerical value for skill level, determine which workers will have an incentive to migrate to the United States. Is this evidence of negative or positive selection? Explain.

b. Now suppose that it costs $20 to migrate to the United States. Who will migrate to the United States? What has happened to the skill level of those who elect to migrate? What has happened to the average skill level in the home country? Why?

Reference no: EM13157614

Questions Cloud

Statements concerning measurement of gains and losses : In the accounting for forward exchange contracts, gains and losses are measured usind either spot or forward rates. Which of the following statements concerning measurement of gains and losses is true?

Contrast capital market research with behavioural research : contrast capital market research with behavioural research

How many individuals participated in the research study : Treatment conditions and obtains 30 scores in each treatment. If the researcher used a repeated-measures design, then how many individuals participated in the research study?

Which nucleotide has been added and which deleted : A single nucleotide addition followed by a single nucleotide deletion approximately 20 bp apart in the DNA causes a change in the protein sequence from.

Who will migrate to the united states : Now suppose that it costs $20 to migrate to the United States. Who will migrate to the United States? What has happened to the skill level of those who elect to migrate? What has happened to the average skill level in the home country? Why?

Government and policing-criminal justice system : How does the relationship between government and policing affect the criminal justice system? Does the criminal justice system need more or less of a governmental relationship to be effective?

The appropriate course of action. : Your contracting activity negotiated a $7,500,000 sole-source contract with the Williams Corporation about eight months ago. After the close of negotiations, Williams signed a Certificate of Current Cost or Pricing Data. During an audit for a follow-..

How many registered voters be sampled for popular vote : In past elections, the representative received 40 percent of the popular vote in that area of the state. She doubts whether it has changed much. How many registered voters should be sampled?

Amount of allowance for uncollectible accounts : The allowance for uncollectible accounts currently has a credit balance of $200. The company's management estimates that 2.5% of net credit sales will be uncollectible. Net credit sales are $115,000. What will be the amount of allowance for uncoll..

User Account

All Pages