Question: answer the question. Consider a low-skilled Haitian immigrant's decision to emigrate to the US. Suppose that log average low-skilled wages are 0.69 and log average

answer the question.

Consider a low-skilled Haitian immigrant's decision to emigrate to the US. Suppose that log average low-skilled wages are 0.69 and log average wages of low-skilled workers in the US is 0.86. Further suppose that the return to skill in the US is 1, while the return to skill in Haiti is 2. The fixed cost of immigration is 4. a. Set up the Roy Model, and show whether the low-skilled immigrant will emigrate to the US. [10] b. Now suppose the Haitian immigrant receives a block grant to emigrate to the US, such that the cost of immigration is 0. Does this change your conclusion? [5] c. Does your conclusion change if the immigrant is high-skilled? [5]

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