The sizeable and continuous flow of immigrants into the United States seems to indicate that there is a positive return to moving. Many economic immigrants, however, never achieve pay-parity with similarly educated native-born workers while others

eventually outdo domestic-born workers in salary wage advancement. Explain.

What will be an ideal response?


Many economic immigrants never achieve pay-parity with similarly educated native-born workers because of a lack of skill transfer ability. Some of the skills that migrants possess may not be perfectly transferable because of occupational licensing requirements, specific training or different languages. On the other hand, moving to another country is costly and it is possible that only those with great motivation for personal economic growth and willingness to sacrifice current consumption migrate. This self-selection process may ensure that only the motivated, hardworking and highly skilled individuals, such as scientists, engineers, physicians and entrepreneurs arrive in other nations and are able to outdo domestic-born workers in salary wage advancement.

Economics

You might also like to view...

Relationship between the quantity of inputs used in production and the quantity produced from those inputs is called.

A. Productivity Equation B. Production function C. an input - output function. D. A GDP deflator E. None

Economics

A current account deficit is generally a result of imports exceeding exports.

a. true b. false

Economics

In the Keynesian model, the full-employment level of output is the amount of output produced when

A. the real wage exceeds the nominal wage. B. labor is paid an efficiency wage, and the real wage equals the marginal product of labor. C. the quantity of labor demanded equals the quantity of labor supplied. D. the market wage exceeds the efficiency wage.

Economics

In year 1, nominal GDP for the United States was $2,250 billion and in year 2 it was $2,508 billion. The GDP deflator was 72 in year 1 and 79 in year 2. Between year 1 and year 2, real GDP rose by:

A. 11.4 percent B. 9.7 percent C. 2.4 percent D. 1.6 percent

Economics