Lecture 18 - Lecture 18 Lecture 18 The Effect of Immigration on Natives Question Question Rose lives in a poor country and earns $5000 per year She

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ecture 18 Lecture 18 The Effect of Immigration on Natives
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uestion Question • Rose lives in a poor country and earns $5000 per year. She has an offer to move to the US for five years where she will earn $35,000 per year. It costs $2,000 to move and $10,000 more per year to live in the US. Her discount rate is 10 percent. she decides not to move because she If she decides not to move because she will miss her family, what can we say bout the psychic costs of the move for about the psychic costs of the move for Rosie?
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Solution • She will earn $30,000 more per year and will have to pay $10,000 more in expenses, so that the net benefits per year are $20,000. • At a 10 percent interest rate 20,000 per year for 5 years is 20+ 20/(1.1) +20/(1.21) +20/(1.33)+20/(1.46) = 83.4K. • Since the costs of moving were 2K and the benefits were 83.4K the psychic costs must have been at least worth 81.4K to osie Rosie.
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otal immigration to US over time Total immigration to US over time
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US Immigration History • Before 1921, immigration was essentially unrestricted. • In 1920, congress adopted the Quota Law which set annual quotas on the basis of nationality. 924- restrictions on immigration from 1924 9 restrictions on immigration from Southeastern Europe. – To protect unskilled domestic jobs. ortugal Spain Bosnia Italy Albania etc – Portugal, Spain, Bosnia, Italy, Albania, etc. • 1965, Quota system abolished, and caps put on overall immigration. (in 1990 it was 675,000) – 480,000 reserved for family reunification, – 140 for exceptionally skilled immigrants for employment, 0 000 for “diversity 50,000 for diversity – No restriction on asylum
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ndocumented Immigration Undocumented Immigration 1. Immigrants who overstay their legal visas. 2. Immigrants who enter illegally. About 30 million people enter the US each year on non-migrant visas. Flow of undocumented is estimated to be between 350,000 and 580,000 per year. (total number in the US is estimated to be 10.3 million).
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olicy on illegal immigration Policy on illegal immigration rior to 1986 the penalty for being caught Prior to 1986 the penalty for being caught was deportation. There were no penalties r employers for employers.
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This note was uploaded on 01/09/2010 for the course ILRLE 2400 at Cornell University (Engineering School).

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Lecture 18 - Lecture 18 Lecture 18 The Effect of Immigration on Natives Question Question Rose lives in a poor country and earns $5000 per year She

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