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AnswersToMT.2009 - Name Instructor Ronald Lee Student ID...

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Name Student ID number Ronald Lee March 10, 2009 Econ/Demog 175 Midterm A 1 Instructor: Ronald Lee University of California, Berkeley March 10, 2009 Departments of Demography and Economics Demography/Economics C175 Midterm Examination Please answer all parts of all questions, using the spaces on the examination itself, and writing on the back of the paper if necessary. On every page of the exam, write your name and SID. You may spend up to 65 minutes on the exam. There are 52 points possible. The possible points are indicated in front of each question, and this is also roughly how many minutes you should spend on each question, which will leave you with eight extra minutes. Make sure you completely label any diagrams you present.
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Name Student ID number Ronald Lee March 10, 2009 Econ/Demog 175 Midterm A 2 I. Short Answer Questions 1. (1 pt.) During which period did immigration contribute the greatest proportion to the U.S. population growth rate? d. 1990-2000 2. (1 pt.) The spike in immigration recorded in the late 1980s through the very early 1990s is due to: c. A program which provided amnesty for illegal immigrants who were already here. 3. (2 pts.) How has immigrant educational attainment changed relative to that of natives since 1960? (Briefly discuss both levels and trends) Both groups have made gains, but immigrants have increased their educational attainment more slowly, resulting in a widening gap between the two over time 4. According to Borjas, how have the earnings of immigrants changed relative to those of natives over the decades since 1960? a) (1 pt.) At time of entering the US? They started below avg. wages of natives upon entry in the 1960s and the relative wage disadvantage of new immigrants upon entry has grown over time). b) (1 pt.) In the years following entry? Earlier waves of immigrants were able to eventually catch up with and surpass avg. native wages. More recent groups have not been able to completely close the gap but narrow it over time. The most recent immigrants fare worse compared to natives over time, with a widening rather than a narrowing gap. 5. (1 pt.) According to the standard labor supply model, a backward bending labor supply schedule is c. More likely to occur when men’s wages rise than when women’s wages rise. 6. (1 pt.) Suppose that the tax rate on both husband’s and wife’s earnings is raised. What happens to the labor supply of the wife? c. It is impossible to predict
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Name Student ID number Ronald Lee March 10, 2009 Econ/Demog 175 Midterm A 3 7. (2 pts.) In an attempt to understand the impact of immigration on native wages in the U.S., you decide to study the labor market of San Francisco over time as immigrants enter. What are three potential sources of bias in this type of study? Possible answers (others also acceptable): Immigrants come to S.F. for high wages Immigrants may disproportionately work in tech. sector (or low-skilled sector) Immigrants way have different language abilities than national average Natives may move away Capital may flow in to support immigrant sector work
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