Unformatted text preview: % Labor Quiz #6 1. Why are some immigrant flows positively selected and other immigrant flows
negatively selected? a. Positive selection occurs when job opportunity in the new country are better
than in the home country.
b. Positive selection occurs when employment rates are higher in the new
country than the home country.
c. Positive selection occurs when more people immigrate from the home country
to the new country, than in the opposite direction. Positive selection occurs when the return to skill is higher in the new country
t an the heme country. 2. In the Roy model of selection, a. Low-quality workers select into jobs with low levels of fringe benefits. b. Desegregation of jobs would increase overall productivity. @All of the highest—quality workers select into the highest-paid occupation.
. Roy selects to buy a Diet Wild Cherry Pepsi from the vending machine. 3. Rosen explains the high earnings of superstars as: a. The returns to skill increase exponentially. b. The compounding effects of commercial endorsements, etc., on top of skilled
workers’ base salary. c. The highest skilled worker in a market gets monopoly profits from his output.
Edi The most talented worker get paid much more than second most-talented
worker when their output is easily mass-produced. 4. The coefficient of discrimination measures: a. The reduction in wages paid to an undesirable worker. /
b. The fraction of undesirable workers who cannot find employment.
c. The additional disutility incurred by hiring an undesirable worker.
. The probability that an undesirable worker finds a job, relative to other
workers. 5. Which is a possible short-run equilibrium in a market with employer
discrimination? a. Wages paid to' undesirable workers are higher than wages paid to desirable
workers, and employment of undesirable workers is higher. @ Wages paid to undesirable workers are lower than wages paid to desirable
workers, and employment of undesirable workers is higher; c. Wages paid to undesirable workers are higher than wages paid to desirable
workers, and employment of undesirable workers is lower. (1. Wages paid to undesirable workers are lower than wages paid to desirable
workers, and employment of undesirable workers is lower. ...
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- Fall '08