1. Consider the following tabulation of (fictitious) average earnings for native- born Canadians and three cohorts...

   

Transcribed Image Text:

1. Consider the following tabulation of (fictitious) average earnings for native- born Canadians and three cohorts of immigrants observed in years 1995, 2000, 2010, and 2015. Immigrant cohorts are divided based on their year of immigration to Canada (e.g., 'IM85' cohort consists of immigrants who came to Canada in year 1985). a) Native-born Immigrants, 1985 (IM85) Immigrants, 1990 (IM90) Immigrants, 1995 (IM95) Immigrants, 1985 (IM85) Immigrants, 1990 (IM90) Immigrants, 1995 (IM95) YSM 1995 $47,000 $42,000 $37,000 $32,000 1995 Fill in the following table. Note that for each observation year, 'YSM' refers to the year since immigration. Calculate the earnings ratio as the average earnings of the given immigrant cohort over the average earnings of the native-born cohort in the given observation year. Note: It is unnecessary to explain how you derived your numerical values. Observation year 2010 $54,000 $50,000 $47,000 $43,000 Earnings YSM Ratio 2000 $49,000 $46,000 $42,000 $39,000 Observation year 2000 2015 $57,000 $56,500 $50,000 $48,500 2010 2015 Earnings YSM Earnings YSM Earnings Ratio Ratio Ratio b) (1 point) Based on your calculations in part a), graphically illustrate the earnings assimilation profile for each immigrant cohort. Place the earnings ratio on the vertical axis and the year since immigration (YSM) on the horizontal axis. c) (1 point) Describe two economic observations that can be made from your graph in part b). Part d) is a bonus question. There is no penalty even if you do not solve these questions. However, you will receive bonus points if you answer correctly and the bonus points will be added to your total mark. d) (1 bonus point) Based on the available data provided in Question 1, is it possible to calculate the size of the entry effect for each immigrant cohort? Explain. Furthermore, calculate the size of the entry effect for each immigrant cohort to the extent that the data allows you to. 1. Consider the following tabulation of (fictitious) average earnings for native- born Canadians and three cohorts of immigrants observed in years 1995, 2000, 2010, and 2015. Immigrant cohorts are divided based on their year of immigration to Canada (e.g., 'IM85' cohort consists of immigrants who came to Canada in year 1985). a) Native-born Immigrants, 1985 (IM85) Immigrants, 1990 (IM90) Immigrants, 1995 (IM95) Immigrants, 1985 (IM85) Immigrants, 1990 (IM90) Immigrants, 1995 (IM95) YSM 1995 $47,000 $42,000 $37,000 $32,000 1995 Fill in the following table. Note that for each observation year, 'YSM' refers to the year since immigration. Calculate the earnings ratio as the average earnings of the given immigrant cohort over the average earnings of the native-born cohort in the given observation year. Note: It is unnecessary to explain how you derived your numerical values. Observation year 2010 $54,000 $50,000 $47,000 $43,000 Earnings YSM Ratio 2000 $49,000 $46,000 $42,000 $39,000 Observation year 2000 2015 $57,000 $56,500 $50,000 $48,500 2010 2015 Earnings YSM Earnings YSM Earnings Ratio Ratio Ratio b) (1 point) Based on your calculations in part a), graphically illustrate the earnings assimilation profile for each immigrant cohort. Place the earnings ratio on the vertical axis and the year since immigration (YSM) on the horizontal axis. c) (1 point) Describe two economic observations that can be made from your graph in part b). Part d) is a bonus question. There is no penalty even if you do not solve these questions. However, you will receive bonus points if you answer correctly and the bonus points will be added to your total mark. d) (1 bonus point) Based on the available data provided in Question 1, is it possible to calculate the size of the entry effect for each immigrant cohort? Explain. Furthermore, calculate the size of the entry effect for each immigrant cohort to the extent that the data allows you to.

Answer rating: 100% (QA)

Answer Answer is Immigrtin is the interntinl mvement f ele t destintin untry f whih they re nt ntive... View the full answer