Question: Self-Selection of Immigrants S Dollars Dollars Positive Selection U.S. Source US's Country wage Source down U.S. Country - Donot Don't Do Not Move Move Move

 Self-Selection of Immigrants S Dollars Dollars Positive Selection U.S. Source US'sCountry wage Source down U.S. Country - Donot Don't Do Not MoveMove Move Move Do Not move Move SP Skills 100 SN Skills556 45 pple move 35 50 100 So ppl . mikeSelection ofImmigrants Suppose there are three countries in the world: A, B and

Self-Selection of Immigrants S Dollars Dollars Positive Selection U.S. Source US's Country wage Source down U.S. Country - Donot Don't Do Not Move Move Move Move Do Not move Move SP Skills 100 SN Skills 556 45 pple move 35 50 100 So ppl . mikeSelection of Immigrants Suppose there are three countries in the world: A, B and C. A is the destination of migrants that come from B and C. Workers will migrate if payoff w. in the destination country is greater than the payoff from the source country. Assume that if payoffs are equal between source and destination country, the worker will migrate. Skills 5 are transferable across countries and are the only determinants of wages. The relations between wages and skills are the following: m4 2 am +1.43 8 EU M Q to _|_ To to a; where all alphas and betas are positive. This question is unrelated to your findings in question 10 and question 11. Now, suppose that each country has 100 workers with skill levels 5 that go from 1 to 100. That is, each country has one worker that has 3 = 1, one that has 8 = 2, one that has 3 = 3, one that has 3 = 100. Those that have 3 g 50 are considered low skilled workers, while those that have s > 50 are considered high skilled workers. How many low skilled and high skilled workers will migrate from each countryfrom B and Cto Aif 05A = 5000, a3 = 4500, OKC' = 5900, 16A : 40:33 = 50 and '80 = 25? How would your results change if wages in A fell by $300. That is, O A will be 300 less than before.Suppose that country A effectively closes its borders. Using the same values of alphas and betas as in point 4, can you say if there could be migration between B and C? If so, who (low or high skill) will migrate from B to C, and who will migrate from C to B

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