Unit 5 ( Labour Migration)

Question 1

Labour mobility

Answer 1

• The mechanism labour markets use to improve the
  allocation of workers to firms
• decisions are guided by comparing present value of lifetime
  earnings among alternative employment opportunities in different locations

Question 2

Improvements in economic opportunities (Jobs, wages) available in a destination location

Answer 2

• increases the net gains to migration
• raises the likelihood a worker moves

Question 3

Improvements in economic opportunities available in the current location

Answer 3

• decreases the net gains to migration
• lowers the likelihood a worker moves

Question 4

factors of Migration

Answer 4

• Income differential between locations
• Employment conditions differential between countries
• Distance
• Education

Question 5

Distance

Answer 5

• Negative correlation between the probability of migration and distance.

Question 6

Education

Answer 6

• Positive correlation between educational attainment and the probability of migration

Question 7

Roy Model

Answer 7

• explains why people migrate for better job opportunities based on their skills and the potential earnings in different countries
• Splits it into two types of migration, Positive selection and Negative selection

Question 8

Positive selection

Answer 8

• If immigrants have above-average skills, the immigrant flow is positively selected

Question 9

Negative selection

Answer 9

• If immigrants have below-average
  skills, the immigrant flow is negatively selected

Question 10

The Impact of a Decline in destination country’s Incomes

Answer 10

• Fewer workers migrate to the U.S.A
• The type of selection (positive vs. negative) doesn‘t change.