The smaller the number of workers that would move the

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The smaller the number of workers that would move, the larger the initial difference in wages between the Origin and Destination regions c. The larger the number of workers that would move, the smaller the initial difference in wages between the Origin and Destination regions d. The larger the number of workers that would move, the larger the initial difference in wages between the Origin and Destination regions e. None of the above
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University of California, Davis Santiago Perez Economics Winter 2018 Name: _____________________________ ID:_________________________________ 6 B. [4 points each, total of 16 points]. Short answer questions 1. Explain the “productivity channel” though which emigration of highly-skilled individuals might help their origin countries. Emigrants can eventually return with accumulated expertise (so called “brain circulation”), or can invest in the source country. In addition, emigrants can help sending countries to incorporate technologies developed in the host country 2. Provide two reasons why immigrants might decide to send remittances to their families in small and frequent amounts. First, it serves as a mechanism of self-control that facilitates saving. Second, immigrants can have more influence on how the money is spent if they send small amounts (they can threaten to not send money if they are unhappy with how the money is being used). Third, sending small and frequent amount enables them to spread out money across multiple recipients. 3. Cortes (2004) compares the increase in earnings of economic immigrants relative to refugees. What is the main finding of this article? What is the likely explanation for this finding according to the author? The main finding of the article is that refugee immigrants experience faster growth in earnings (that is, faster convergence to natives in the labor market) that economic immigrants. The most likely explanation is that, because refugees are typically unable to return to their countries of origin, they have stronger incentives than economic immigrants to invest in human capital specific for the US economy. The paper indeed shows that refugees undertake such investments. For instance, they improve their English ability faster than economic immigrants. 4. Explain what is a “resettlement scheme” in the context of refugee migration and what is its main advantage from the point of view of refugees. The UNHCR (United Nations High Commissioner for Refugees) operates “resettlement schemes" that transfer refugees from one host country to another that has agreed to sadmit them (participation of host countries is voluntary). The major advantage is that displaced people do not need to engage in dangerous and illegal trips to find a safe haven abroad. However, a very small fraction of refugee benefits from “resettlement schemes"
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University of California, Davis Santiago Perez Economics Winter 2018 Name: _____________________________ ID:_________________________________ 7 C. [4 points each, total of 12 points]. Exercise 1 Consider a situation in which there are just two countries: an Origin, and a Destination country.
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  • Winter '16
  • Janine Wilson
  • Economics, Human migration, Santiago Perez

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