INR 4011 (Cunha): Final Exam
conventional economic theory
suggests that trade and immigration policy have similar material effects
the wealthy and very wealthy
the biggest winners of the elephant curve
demography (macro)
the country's age distribution can influence supply and demand for migrants
non-economic factors
the difference between trade attitudes and immigration attitudes is due to the fact that immigration attitudes are influenced by __________
cultural cleavage
the national, ethnic, religious, or cultural identity of the "people" against outsiders
88%
the percentage of manufacturing jobs in the U.S. are being displaced by robots
globalization
the process by which businesses or other organizations develop international influence or start operating on an international scale
liberalization
the removal or loosening of restrictions on something, typically an economic or political system
outsourcing and automation
why have the working and middle class in rich countries seen little to no growth?
there are more immigrants/people in general that need to be taken care of
why is there a demand increase for labor when there are more immigrants?
there are more immigrants that can/are willing to work
why is there a supply increase for labor when there are more immigrants?
push factors (macro)
widespread unemployment, poverty, discrimination, political unrest, war, famine, drought, land shortage, overpopulation
destination
social capital, relationships, and intermediaries connect potential migrants with opportunities in (home/destination) country
national sovereignty + democratic politics
bretton woods compromise; needed a regime that would combine a national sovereignty with democratic politics
support for trade
which is higher: support for immigration or support for trade?
inequality between countries
which is higher: Inequality between countries or inequality within countries
India
#1 origin for number of migrants (2017)
USA
#1 receiving country for the number of migrants in 2017
Mexico
#2 origin for number of migrants (2017)
Saudia Arabia
#2 receiving country for the number of migrants in 2017
Russia
#3 origin for number of migrants (2017)
Germany
#3 receiving country for the number of migrants in 2017
right-wing populism
(left-wing populism/right-wing populism) supports cultural cleavage
left-wing populism
(left-wing populism/right-wing populism) supports economic cleavage
labor market competition hypothesis and fiscal burden hypothesis
2 hypotheses based on economic self-interest
global federalism and limited democracy
2 paths towards hyper-globalization
bargaining and taxation
2 possibilities as to why financial globalization increases inequality and the capital share of income
demography, push factors, pull factors
3 examples of macro-level
neoclassical approach, migration hump, and new economics of labor migration (NELM)
3 examples of micro-level
immigration
Americans see (immigration/trade) as a threat
trade
Americans see (immigration/trade) to be good for the US economy
bargaining explanation (the reason globalization increases inequality and the capital share of income)
Capital mobility ⬇ ↑ Outside option for employers ⬇ Credible threat ⬇ Accept lower wages *in simpler terms, the capital starts flowing between country's borders which leads to employers finding more options for people to work for them from other countries, this causes a threat for the workers of the native and foreign countries, which makes people willing to accept a lower wage so at least they can get a job*
efficiency cost
The term used to describe the total cost incurred by an organization as a result of an out-of-control situation
borders
________ limit globalization when it comes to political and legal jurisdiction
national sovereignty
__________ interferes with contract enforcement, leaving international transactions at risk of opportunistic behavior
redistribution
a form of exchange in which goods flow into a central place, where they are sorted, counted, and reallocated
the bottom 50%
according to the elephant curve, which group captured 12% of growth?
the top 1%
according to the elephant curve, which group captured 27% of growth?
working longer hours to pay an immigrant to do the job because you are providing an immigrant a job
comparative advantage example for immigration, which is better: working longer hours to pay an immigrant to do the job or working less hours and doing the job yourself rather than an immigrant?
robots
due to globalization are jobs being replaced by immigrants or robots?
higher
electoral districts with lots of trade experience (higher/lower) polarization
pull factors (macro)
employment opportunities, political and personal freedoms (speech, religion, right to vote, etc.), land, amenities (e.g., retirement)
does
engineers, managers, accounts (does/not) include high-skilled workers who can expand internationally
globalization trilemma
full international economic integration, national sovereignty, democracy (mass politics); can only have 2 of 3
diffused
gains from trade are (concentrated/diffused)
smaller
get (smaller/larger) efficiency gains, from further liberalization when the economy is somewhat liberalized already
larger
get (smaller/larger) redistribution effects from when globalization advances
democratic politics + full international economic integration
global federalism and global governance
full international economic integration + national sovereignty
golden straightjacket 1st globalization era (1870-1914); enforced the rights of investors and ensured the free flow of capital around the world
elephant curve
graph to show the impact of globalization on the income of different groups
Republican
if there is an area with high trade exposure, people are more likely to elect a _________ to congress
benefits
immigration (benefits/harms) innovation
reasons opinions on trade and immigration are not similar
immigration attitudes/policy reflect a set of non-economic factors; nativism, xenophobia, nationalism, etc.; consistent with natives' overall preference for high-skill over low-skill immigration regardless of natives' skill level; consistent with high-skill being less anti-immigrant than low-skill natives regardless of the category of immigrant
supported
immigration from Europe is (supported/opposed) the most (according to Goldstein and Peters)
opposed
immigration from Mexico is (supported/opposed) the most (according to Goldstein and Peters)
does not
immigration leads to economic benefits mostly, and (does/not) significantly affect wages for native-born workers
rich natives
in fiscal burden hypothesis, do rich natives or poor natives oppose low-skill immigration and favor high-skill immigration?
high-skill
in fiscal burden hypothesis, it assumes (high-skill/low-skill) immigrants are net contributors on public finance
low-skill
in fiscal burden hypothesis, it assumes (high-skill/low-skill) immigrants impose net burden on public finance
black
in hard hit localities, (white/black) voters more likely to vote for Democrats
white
in hard hit localities, (white/black) voters more likely to vote for Republicans
oppose; support
in the labor market competition hypothesis, it is believed that natives should (support/oppose) immigrants with similar skill levels, but (support/oppose) immigrants with different skill levels
increases
in the labor market competition model, Immigration (increases/decreases) supply of low-skilled labor relative to other factors
decrease
in the labor market competition model, since the supply of low-skilled labor increases, do the wages of native low-skilled workers (increase/decrease)?
increased
income inequality has (increased/decreased) since 1980 in English-speaking countries (but not in continental Europe)
pull factor for immigration
induce people to move into a new location
push factor for immigration
induce people to move out of their present location
limited democracy
keep national borders, but ensure that national jurisdictions do not get in the way of international markets, main goal is to maintain market confidence, democratic choice over economic policy must be restricted
concentrated
losses from trade are (concentrated/diffused)
demographic, political, and economic conditions
macro-level (for migration)
contract enforcement
major source of transaction costs
networks and systems
meso-level (for migration)
individuals and families
micro-level (for migration)
the lowest part of the elephant curve
middle class workers in developed companies are competing against immigrants working for cheaper labor and automated devices replacing them
immigrants working for cheap labor and automated devices
middle class workers in developed companies are competing with...
migration hump (micro)
migration is based on how small or large the wage gap is; if the wage gap is increasing, people are more likely to migrate, but if the wage gap is decreasing, people are less likely to migrate because of the costs that come with migrating
neoclassical approach (micro)
migration is based on individuals seeking to maximize higher wages because of the wage gap between the country they leave and the country to go to; migration as investment in one's "human capital"
new economics of labor migration (micro)
migration is based on the decision of the family and overall welfare of the migrant/family
similar
migration occurs primarily between countries of (different/similar) regions
taxation explanation (the reason globalization increases inequality and the capital share of income)
mobile capital is harder to tax, governments have to fund themselves by taxing less mobile things, labor and consumption *in simpler terms, capital that is mobile is hard to tax since it can flow between different countries, this leads to a government trying to find other ways to make money which would be taxing things that are not mobile, such as labor and consumption*
consumer
most people experience trade as a (producer/consumer)
decreased
opposition for populist parties have (increased/decreased) over time
labor market competition model
opposition to immigration may result from concerns about competing against immigrants for local jobs
fiscal burden model
opposition to immigration may stem from natives' unwillingness to fund public services for immigrants
human rights
people tend to migrate to Europe for the promises of __________ rather than just jobs
leave
people who feel that their life is under threat and that their future is compromised will (stay/leave)
48%
percentage of migrants that are female
70%
percentage of migrants that are of working age (ages 20-64) (2017)
global federalism
removes "border" effects, national jurisdictions do not interfere with international market, minimal transaction costs and tax differentials
Asia and Europe
the top two regions of origin and destination for migrants
economic cleavage
the wealthy groups who control the economy vs. the powerless, lower income groups
micro, meso, macro
three levels for migration
networks (meso)
translation of potential migration into actual migration requires _______ in place (hint: 1 example of meso-level)
true
true or false: migrants want to come to a country and be able to contribute, and want to be able to fill their potential
false
true or false: social welfare is part of the initial decision to migrate
the effect of globalization on income growth for people of various incomes
what does the "elephant graph" show?
they have been lifted out of extreme poverty
what has happened to the 1.1 billion people on the "back" and "head" of the elephant graph?
they can take advantage of global markets
what is the primary reason people in the top of the "trunk" of the elephant have seen the most benefits under globalization?
Goldin et al (2012)
which author(s) discuss/es the reason people migrate?
Goldin et al (2012)
which author(s) discuss/es the three levels that one may choose to migrate, the micro, meso, and macro levels?