Question

1. Explain how if rewards in the labor market differ in the United States versus another country how this can result in migration associated with positive or negative selection. This answer will require two graphs.

Answer 1

If the destination country offers heigher labour market rewards for skill relative to the sending country, the migrant flow will be positively selected on the basis of skill.By positive selection, we mean that migrants have more productive skills .

The united states has long been opportunity for immigrants.Yet both the past and todsy, US natives have expressed concern that immigrants fail to integrate into US society and lower wages for existing workers. To understand this we reviews the literature on historical and contemporary migrants flows, yielding new insight on migrant new insight on migrant selection, assimmilation of immigrants into US economy and society, and the effects of immigration on the labour market.

The united states has long been perecived as a land of opportunity, a place where prospective immigrants can achieve properity and upward mobility. Yet, both in the past and today, US natives have expressed concern that immigration lowers wages and that new arrivals fail to assimilate intoUS society. These fears have influenced historical immigration policy and are echoed in contemporary debates.

In oreder to knowing this, we address three major concerns in the economic of immigration: whether immigrants were positively or negatively selected from their sending countries; how immigrants assimilated into the US economy and what effects that immigration may have on the economy, including the effects of immigration on nativeemployement and wages.In each case, we present studies covering the two main eras of US Mass migration form Europe and the recent period of renewed mas migration from america.

The nature of migration selection apperars to have change over time. Whereas, in the past, migrant selection patterns were mixed with some migrants positively and others negagively selected from their home countries of the basis of skill, migrants today are primarily positively selected from source country population, at least on observable characteristics. The rise in income ineqality in the US can help explain the increasingly positive selection of immigrantsseeking to take advantage of high returns to skill in the US. But the fact that recent immigrants are not negatively sellected-even from destination that are more unequal than the US, as would be predicted by the classis Roy model of self-selection- may be expalined by the growing selectively of US immigration policy over time, or by rising cost of entry due to strict immigration restrictions.

secondly, both in the past and today, the evidence is not consistent with the common perceptionof the "American dream," wherebly immigrants in both periods have experienced occupational or earning growth at around the same pace as native. As a result, iimmigrants who held lower-paid occupationsthan natives upon arrival to the US did not catch up with natives over a single generation. The major differencebetween the past and present is that, circa 1900, typical long born, even upon firstarrival, whereas today the average iimigrant earns less than native upon arrival to the US.

Immigration affects the labour suppl;y, as it increase the pool of workers in certain sectors of the economy . At the same time ,immigration is likely to increase the demand for labour, as migrants expand consumer demand for certain goods and services

Migration opportunities lead to greater investment in education in developing countries. Overall research suggest that migration is beneficial both to the receiving and sending countries.Fueled industrial growth, helped build railroads and worked in factories, mill and mines, traditions became part of america, became act5ive in labour unions and politics .

Thus emigration has a positive effect on the sending countryFor example by decreasing the labour pool in the sending country,emigration helps to alleviate unemployment and increase the income of the remaining workers.