Political Economy of Racism-page13

Political Economy of Racism-page13 - each year. (Borjas,...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Tuesday November 1, 2011 Projet presentations start on the 29 th of November 1, 2011 Final Paper is due December 8 th . Next Quiz is the 17 th . - On Takaki chapter 9 - Projects Begin November 29 th ! - Paper is due December 8 th ! Migration and Immigration: - Labor mobility: Is it a good thing? Why? Or why not? - Migration or immigration: Is it rational? - Under what conditions is immigration most likely to cause job loss? Is the job loss permanent? Labor Mobility - Improves match between worker and firm. - Helps labor market clearing. - (internal migration) Reduces wage differentials across regions and improves labor market efficiency. - Extent: Nearly 4% of workers in early 20s switch jobs in any given month, 3% across state lines, and nearly 1.4million documented and undocumented workers enter the US
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: each year. (Borjas, 2008). -Effect: Internal migration raises wages over 10%. -Internal migration costs young workers $250,000. -Determinants of migration: o Income differential between destination and origin (+2%) o A 10% increase in employment growth in the origin (-2%) o Doubling distance between origin and destination (-50%). -Has also been found to depend on worker characteristics: o Age (-) o Education (+) -Within the US (African Ameircans 1900-1950; California post war). Rationality for choosing to migrate: -What are the costs? o Moving expenses. o Language barriers. o Risk. o Social/psychic cost. o Lost wages? Migration and Immigration: Labor Market Effects -Simplest model: Workers are substitutes. Short term job loss, long term adjustment (adjustment costs)....
View Full Document

This note was uploaded on 11/08/2011 for the course ECON 144 taught by Professor Lisasaunders during the Fall '11 term at UMass (Amherst).

Ask a homework question - tutors are online