Question: Assume that there are two countries: an Origin, and a Destination country. Workers in each of these countries can be either educated or *uneducated. Workers






Assume that there are two countries: an Origin, and a Destination country. Workers in each of these countries can be either \"educated\" or *\"uneducated\". Workers\" wages depend on whether they are \"educated\" or \"uneducated\Migrating from the Origin to the Destination country requires paying a visa fee of 5 (this 1s the only cost of migrating). ad. Assume you are an \"educated\" worker in the origin country. Which level of motivation (\"m\" would you need to have so as to be indifferent between staying in the Origin country and migrating to the Destination country? Which level of motivation (\"m\") would you need if you were an \"uneducated\" worker in the Origin instead? Are immigrants moving from the Origin to the Destination country positively or negatively selected with respect to \"motivation? Explain The government of the destination is worried about the large inflows of immigrants that the country is receiving. To deal with this issue, it decides to introduce a \"points system\" to determine which immigrants to allow into the country. Specifically, the government decides that it will only accept \"educated\" immigrants. b. What would be the effect of this policy on the average level of \"motivation\" of immigrants? Why
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
