Econ Immigration midterm

Which of the factors are NOT push factors that apply to refugees and asylum seekers? A. War and oppression/persecution B. Natural disasters and famine C. High unemployment, high taxes, low wages

C Push factors: Natural disasters and famine War and oppression/persecution Pull factors: Rights and freedoms / law and order

Dziadula, E. (2020). "Marriage and Citizenship Among U.S. Immigrants: Who Marries Whom and Who Becomes a Citizen?" states that citizenship status of a spouse plays a larger role than birthplace in the naturalization decision of an immigrant.

citizenship status

What is the jus soli principle?

commonly referred to as birthright citizenship, is the right of anyone born in the territory of a state to nationality or citizenship.

According to the Integrating refugees report, an asylee in the United States is defined as

a person physically present in the country or at the port of entry when applying for asylum.

In Ost and Dziadula (2016), the regression results imply that Asian mothers on average have

a preference for boys, as they are 5 percentage points more likely to have a third child if they have two daughters relative to mothers who had two boys

Felfe de Ormeño, Christina / Rainer, Helmut (2020) "Intended and Unintended Consequences of Birthright Citizenship" state that citizenship (select all that apply): A. improves immigrants' professional opportunities B. may act as a signal to employers that the prospective employee is committed to remaining and integrating oneself into the host society C. brightens immigrant children's future professional outlook and may thus act as a catalyst for human capital investments in immigrant families D. is a "sign of goodwill" by the host country, and thus actively promotes the integration of immigrant children into the host society

all

Based on Akcigit, Ufuk, Salomé Baslandze, and Stefanie Stantcheva. 2016. "Taxation and the International Mobility of Inventors." a superstar inventor is

an inventor in the top 1% of patent citations

Suppose the destination country has a more progressive tax structure than the origin country. How would this affect negative selection?

causes it to be more negatively selected A progressive tax structure means the marginal tax rate increases as income increases, or the higher someone's income is, the more she pays in taxes as a percentage of her income. A more progressive tax structure in the destination than in the origin reduces the return to skill in the destination country relative to the origin country, all else equal. This exacerbates the direction of selection—if immigration is positively selected, this causes it to be even more positively selected, and if it is negatively selected, this causes it to be even more negatively selected. If the tax progressivity is extreme enough, it could cause a change in the direction of selection from positive to negative.

Akcigit, Ufuk, Salomé Baslandze, and Stefanie Stantcheva. 2016. "Taxation and the International Mobility of Inventors.", the lower the tax in the top bracket, the smaller the percentage of superstar inventors who will remain in the country.

false

Lubotsky (2007) argues that the closing of the earnings gap between immigrants and natives from one census to another can be explained by

negatively selected return migration

According to Hatton (2020), immigration policy serves the interests ...

of the host-country population.

Refugees __________ $21000 more in _______ than _________ over the first 20 years of living in the US.

pay, taxes, benefits

According to the Integrating refugees report, an asylum applicant in the European Union is defined as

person who submitted an application for international protection

In Ost and Dziadula (2016), the main age at arrival coefficient suggests that women who arrive later generally have lower fertility rates compared to women who arrive earlier.

true

Rho and Sanders (2020) show in Figure 3 that immigrant workers from the 1995-1999 cohort at age 25

with bachelor's degrees have higher earnings than natives with bachelor's degrees

According to Hatton (2020), the UNHCR estimates the total number of refugees worldwide at the end of 2018 at

20.1 million

In Ost and Dziadula (2016), ____ % of Asian mothers who had a boy and a girl as their first two children have three or more children.

25

What percentage of asylum grants in the US in 2014 were to China?

33%

Suppose a person has a utility function that increases linearly with net income. Suppose the person can earn the equivalent of $8,000 if employed in the origin country and $12,000 if employed in the destination country. At what level of migration costs is this person indifferent to moving if the probability of employment is 100 percent in both countries?

4000

According to Dziadula, E. (2020). "Marriage and Citizenship Among U.S. Immigrants: Who Marries Whom and Who Becomes a Citizen?", _____% of immigrant women who married a foreign-born citizen are currently naturalized.

46.6 the highest rate among any group

Which of the factors are NOT pull factors that apply to economic migrants? A. High unemployment, high taxes, low wages B. Generous welfare benefits C. Low unemployment, low taxes, high wages D. Protection of property rights/law and order

A Pull factors: Low unemployment, low taxes, high wages Property rights/law and order Generous welfare benefits

Can a destination country can experience both positive and negative selection in immigration at the same time?

A destination country can have positive selection in immigration from one origin country and negative selection in immigration from another origin country. Suppose immigrants are moving to country A from countries B and C. If the rankings of the returns to skill are ReturnB < ReturnA < ReturnC, then immigrants from country B to country A will be positively selected while immigrants from country C to country A will be negatively selected.

What factors determine whether immigrants choose to become naturalized citizens in the destination? Select all that apply. A. Rules about dual citizenship B. the difficulty and cost of acquiring naturalized citizenship in the destination country C. the difficulty and cost of acquiring a passport in the country of origin D. immigrants' ties to their origin versus their destination, and their return migration plans E. immigrants' duration of residence in the destination

A, B , D, E Rules about dual citizenship (including tax codes and military service); the difficulty and cost of acquiring naturalized citizenship in the destination country; immigrants' ties to their origin versus their destination, and their return migration plans; immigrants' duration of residence in the destination; and migrant type all contribute to immigrants' naturalization decision.

An ethnic enclave may.... (select all that apply) A. provide potential immigrants with information about the region B. signal good economic, political and social conditions C. increase migration costs D. help immigrants find jobs and housing

A, B, D

How can countries reduce the likelihood of being a welfare magnet? Select all that apply A. Countries can adopt policies to limit immigration to certain skill groups or education levels. B. Countries can require that immigrants have a job offer or a certain amount of assets in order to reduce the number of immigrants who qualify for public assistance programs. C. A country may also choose to expand welfare benefits to immigrants or offer public assistance. D. A country may also choose to deny welfare benefits to immigrants or restrict public assistance until an immigrant has become a naturalized citizen.

A, B, D Countries can adopt policies to limit immigration to certain skill groups or education levels. Countries can require that immigrants have a job offer or a certain amount of assets in order to reduce the number of immigrants who qualify for public assistance programs. A country may also choose to deny welfare benefits to immigrants or restrict public assistance until an immigrant has become a naturalized citizen.

What are some of the factors constraining emigration according to Clemens, M.A. (2011). "Economics and emigration: Trillion-dollar bills on the sidewalk?" (mark all that apply) A. credit constraints B. lack of birth certificates C. limited information at the origin D. policy barriers in destination

A, C, D

What types of barriers to immigration might a country impose? Select all that apply. A. restrictions based on health, education, age or wealth B. countries may refuse to grant a passport C. quotas, or caps, on the number of immigrants overall, and quotas by type of immigrant D. border controls, such as guards, fences and drones, and interior controls.

A, C, D A country might impose quotas, or caps, on the number of immigrants overall, and quotas by type of immigrant (economic, high-skilled, low-skilled, family-based, refugees, and so on) and by country or origin. Countries may also impose restrictions based on health, education, age or wealth (e.g., some countries require immigrants to provide proof of ability to support themselves financially). A country might use border controls, such as guards, fences and drones, and interior controls, such as checking people's papers when they interact with police or get a job. A country might impose these barriers in an attempt to reduce the number of immigrants or to change the composition of immigrant inflows. For example, a country might restrict the number of low-skilled workers immigrating because it is concerned about adverse effects on competing low-skilled natives or about negative fiscal consequences.

Why do immigrants go to poor countries? Select all that apply. A. because migration costs are lower than the cost of moving to a wealthy, industrialized country B. because poor countries tend to be further away C. because immigrants from poor countries may possess skills that are a better fit in the labor market in another poor country than in a rich country's labor market. D. because immigrants may have bigger networks in poor countries than in rich countries if earlier immigrants also were more likely to go to poor countries

A, C, D Immigrants may go to a poor country because migration costs are lower than the cost of moving to a wealthy, industrialized country. Rich countries tend to have tighter restrictions on immigration than poor countries, and they tend to be further away—rich countries tend to be near other rich countries, and poor countries near other poor countries. Moreover, immigrants from poor countries may possess skills that are a better fit in the labor market in another poor country than in a rich country's labor market. Poor countries also have a lower cost of living. Finally, immigrants may have bigger networks in poor countries than in rich countries if earlier immigrants also were more likely to go to poor countries.

Why might each successive cohort have better labor market outcomes than the previous cohort? Select all that apply. A. Successive immigrant cohorts may benefit from bigger and better networks, helping immigrants to find jobs and earn more than their predecessors B. Macroeconomic conditions may be continually worsening C. Successive immigrant cohorts may enter their destination with more transferable skills D. Successive immigrant cohorts may face less discrimination, enabling it to do better in the labor market E. Successive immigrant cohorts may invest more in human capital upon entry F. if return migration is negatively selected, it will make each subsequent generation look more successful than previous generations at a point in time.

A, C, D, E Successive immigrant cohorts may enter their destination with more transferable skills or higher levels of human capital, and they may invest more in human capital upon entry. Macroeconomic conditions may be continually improving. Each successive generation may benefit from bigger and better networks, helping immigrants to find jobs and earn more than their predecessors. In addition, immigration may become more positively selected with each successive generation. Or, each successive generation may face less discrimination, enabling it to do better in the labor market. Another possibility is that return migration is positively selected, making each subsequent generation look more successful than previous generations at a point in time, if not taking selection in return migration into account.

What are some examples of the lump labor fallacy from the Human Capital reading?

A. tens of millions of new jobs in the 90's in the US, including the internet sector B. women entering labor force without adverse impacts on unemployment D. immigrants entering labor force without adverse impacts on unemployment

Which of the following are push factors likely to influence immigrants' choice of destinations? Select all that apply. A. weak economy, poverty B. better labor market opportunities, higher wages C. war, violent conflict D. social/ethnic networks, family ties E. ethnic discrimination, religious persecution F. political stability and safety G. natural disasters, political turmoil

A. weak economy, poverty C. war, violent conflict E. ethnic discrimination, religious persecution G. natural disasters, political turmoil Push factors in the origin country may include a weak economy, war, violent conflict, poverty, natural disasters, ethnic discrimination, political turmoil and religious persecution.

Why do some immigrants leave the destination country? Use the utility- or income-maximization model and the gravity model from Chapter 2 to explain out-migration. Select all that apply A. Immigrants choose to leave because they earn more in another country—either their origin or a third country—than in the destination country, net of migration costs. B. Immigrants may have reached the end of their career and want to retire to their origin, which has a lower cost of living. C. Immigrants who are sending remittances to their origin country may choose to return because their origin country's currency has appreciated. D. They may also develop skills and experience in the destination country that are valuable in the labor market in the origin.

All According the utility maximization model, immigrants choose to leave because they earn more in another country—either their origin or a third country—than in the destination country, net of migration costs. Economic conditions may have weakened in the destination or improved in the origin (or in a third country). Immigrants may have reached the end of their career and want to retire to their origin, which has a lower cost of living. Immigrants who are sending remittances to their origin country may choose to return because their origin country's currency has appreciated. Some immigrants may have migrated to accumulate a certain amount of savings, and then return to the origin when they reach that goal. They may also develop skills and experience in the destination country that are valuable in the labor market in the origin. In addition, some immigrants may leave the destination country involuntarily for reasons such as visa expiration or deportation.

A person with a low discount rate places a A. relatively lower value on future income than a person with a high discount rate. B. relatively higher value on future income than a person with a high discount rate.

B

What factors led to the dispersion of immigrants across the United States during the 1990s and 2000s? Select all that apply. A. Immigrants did not enjoy living in large ethnic enclaves because of discrimination and decided to move to new destinations. B. Immigrants were attracted to southern and western "Sunbelt" states, such as Georgia, Nevada and North Carolina, because these states were experiencing strong economic growth. C. Immigrants who had been in the United States for years may have been moving out of ethnic enclaves into these new areas as they assimilated. D. Immigrants were attracted to southern and eastern "Sunbelt" states, such as Georgia, Virginia and New York, because these states were experiencing strong economic growth.

B, C Immigrants were attracted to southern and western "Sunbelt" states, such as Georgia, Nevada and North Carolina, because these states were experiencing strong economic growth. In addition, immigrants who had been in the United States for years may have been moving out of ethnic enclaves into these new areas as they assimilated. Newly arriving immigrants may have followed them to these new areas.

Based on Dziadula, 2018. "Timing of Naturalization Among US Immigrants." the possible explanation(s) of why living in a metro area is associated with higher probability of naturalization A. more connected transportation network B. lower cost of obtaining information C. easier to hire an immigration lawyer D. lower cost of traveling to an interview E. lower cost of communication with origin country

B, C, D

What are the likely economic effects of barriers to immigration? Select all that apply. A. higher wages for natives and higher GDP B. less innovation C. higher wages for natives, but lower GDP D. more innovation E. an increase in illegal immigration F. a decrease in illegal immigration G. lower wages for natives and higher GDP

B, C, E One economic effect of barriers to immigration is higher wages (and employment, if labor supply is not perfectly inelastic) for natives, but lower GDP. Another result may be less innovation if a country restricts skilled labor. The net fiscal balance (government revenues less costs) may be higher or lower, depending on the skill level of the potential immigrants who are deterred; fewer skilled immigrants probably means a worse net fiscal balance, while fewer less-skilled immigrants probably means a better net fiscal balance. Yet another possibility is an increase in illegal immigration when legal pathways are blocked.

Which of the following are pull factors likely to influence immigrants' choice of destinations? Select all that apply. A. weak economy, poverty B. better labor market opportunities, higher wages C. war, violent conflict D. social/ethnic networks, family ties E. ethnic discrimination, religious persecution F. political stability and safety G. natural disasters, political turmoil

B. better labor market opportunities, higher wages D. social/ethnic networks, family ties F. political stability and safety Pull factors in the destination country can include better labor market opportunities, higher wages, social/ethnic networks, family ties, political stability and safety.

Which of the factors are NOT push factors that apply to economic migrants? A. Confiscation of assets B. High unemployment, high taxes, low wages C. Poverty/limited safety net D. Generous welfare benefits

D Push factors: High unemployment, high taxes, low wages Confiscation of assets Poverty/limited safety net

Which option does NOT represent a concern about using cross-sectional data to measure assimilation? A. Cross-sectional data do not account for differences across immigrant cohorts B. Cross-sectional data do not account for return migration C. Cross-sectional data do not account for changes in macroeconomic conditions over time that can affect estimates of immigrants' earnings and employment D. Cross-sectional data do not account for differences across immigrants

D is too broad it does measure differences between immigrants

According to Lubotsky (2007) Figure 2, the census data underestimate the growth of immigrant earnings relative to natives with the duration of stay in the US.

False Maybe because of negatively selected return migration

According to Clemens, M.A. (2011). "Economics and emigration: Trillion-dollar bills on the sidewalk?", based on health status of non-migrants in countries experiencing an outflow of doctors and nurses, there is evidence of negative outcomes due to brain drain.

False

Razin, A., & Wahba, J. (2015). "Welfare magnet hypothesis, fiscal burden, and immigration skill selectivity" show strong support for the welfare magnet hypothesis especially under the restricted-migration system.

False

Rho and Sanders (2020) imply that cross-sectional estimates are biased downward due to selective outmigration of low earning immigrants.

False

Compensating differential

If everyone is educated and there still exists an unpleasant or risky task that needs to be done, wage would get bid up so that someone would leave a more pleasant job to perform this task. In labor economics, this wage increase is referred to as:

Suppose the transferability of skills from an origin to a destination increases. What is likely to happen to immigrants' wages relative to natives' in the destination?

Immigrants' wages are likely to increase relative to natives' wages in the destination

Suppose a destination country adopts a policy that guarantees all residents, including immigrants, a minimum income well above the current lowest income in the origin. How will this affect the direction of selection of immigrants if immigration is negatively selected? Assume that the earnings distribution in the origin and migration costs do not change.

In the negative selection case, people at the bottom of the distribution are already moving, so the guaranteed income doesn't affect their decision. There is no change in the number of migrants unless the guaranteed income is higher than the income of the marginal mover. If so, more people will move, but migration will remain negatively selected.

Based on Dziadula, 2018. "Timing of Naturalization Among US Immigrants." the geographic distance is positively associated with the probability of naturalization and is a proxy for

MOVING COSTS

According to Felfe de Ormeño, Christina / Rainer, Helmut (2020) "Intended and Unintended Consequences of Birthright Citizenship", an example of an unintended consequence of birthright citizenship is:

Self-reported life satisfaction falls by almost a third of a standard deviation for immigrant girls born after the reform.

According to the Integrating refugees report, relative to the size of its population, who received the most asylum applications in 2015?

Sweden

According to Hatton (2020), the largest number of asylum applications to Western countries between 2009-2018 were from

Syria

based on the Human Capital reading: What is lump labor fallacy?

The mistaken belief that there is a fixed amount of work in the economy, and thus each new job must come at the expense of a job lost somewhere else.

In what region is the husband a tied mover?

The wife is a tied stayer in Region E. She would migrate if she were single because her gains from moving are positive, but she stays because her husband's losses exceed her gains. The wife is a tied mover in Region B. She has a loss that is outweighed by her husband's gains. The husband is a tied stayer in Region A, where his wife's losses outweigh his gains. The husband is a tied mover in Region D, where his wife's gains outweigh his losses.

jus culturae:

This provision grants citizenship at a relatively early age to a child born in the destination country of an immigrant parent, provided that the child has attended (or completed) school in the destination county itself. While jus culturae actually represents a path to early naturalization through socialization, it can be likened to jus soli in terms of its effects. Examples of adoption of jus culturae, in varying combinations with more conventional legal provisions, are France, Latvia and Portugal, whereas Italy has been debating whether to mitigate its strongly jus sanguinis-oriented regime by adopting jus culturae.

According to Clemens, M.A. (2011). "Economics and emigration: Trillion-dollar bills on the sidewalk?", more than 40 percent of adults in the poorest quartile of countries would like to move permanently to another country in they had the opportunity.

True

Evans and Fitzgerald use synthetic cohorts in their analysis of refugees in the US.

True

According to Felfe de Ormeño, Christina / Rainer, Helmut (2020) "Intended and Unintended Consequences of Birthright Citizenship", an example of an intended consequence of birthright citizenship is:

investment in human capital

What is a jus sanguini principle?

is a principle of nationality law by which citizenship is not determined by place of birth but by having one or both parents who are citizens of the state.

According to Bertocchi, Graziella / Strozzi, Chiara (2020) "Citizenship at Birth in the World", a new conditional form of jus soli has been adopted by several nations called

jus culturae

According to Bertocchi, Graziella / Strozzi, Chiara (2020) "Citizenship at Birth in the World": Civillaw is associated with

jus sanguinis

According to Bertocchi, Graziella / Strozzi, Chiara (2020) "Citizenship at Birth in the World": Common law is associated with

jus soli

Akcigit, Ufuk, Salomé Baslandze, and Stefanie Stantcheva. 2016. "Taxation and the International Mobility of Inventors." use which inventors as a control group for the superstar inventors?

lower quality inventors from the same country

Ost and Dziadula (2016) measure "male preference" by

the increase in the probability of having a third child if your first two children were girls

Based on Dziadula, 2018. "Timing of Naturalization Among US Immigrants." the Sojourner Index is a proxy for

the propensity to return migrate

Suppose a destination country adopts a policy that guarantees all residents, including immigrants, a minimum income well above the current lowest income in the origin. How will this affect the direction of selection of immigrants if immigration is positively selected? Assume that the earnings distribution in the origin and migration costs do not change.

the relationship between immigration and skill will be U-shaped instead of positive or negative In the positive selection case, low-skilled people initially don't move because they earn more in the origin than in the destination. If the guaranteed income in the destination, net of migration costs, exceeds the lowest income in the origin, people at the bottom of the distribution in the origin will now move. People at the top of the distribution will continue to move. People in the middle will not move unless the guaranteed income (net of migration costs) exceeds their income in the origin. As a result, migration will increase, and the relationship between immigration and skill will be U-shaped instead of positive or negative.

Lubotsky (2007) highlights that despite decades of research, immigrant earnings assimilation remains disputed. He concludes that researchers do agree _______.

the shift in the composition of countries of origin among migrants play a role in the lower average labor market earnings of immigrants in the 80s, 90s and 2000s.

Lubotsky (2007) points to selective back-and-forth migration. Immigrants when asked about the year of arrival are led to answer with the most recent arrival. If these migrants are negatively selected,

these transient migrants would be more represented in the more recent cohorts, and this would make it seem that the most recent migrants have lower earnings than earlier cohorts.

Akcigit, Ufuk, Salomé Baslandze, and Stefanie Stantcheva. 2016. "Taxation and the International Mobility of Inventors.", the lower the tax in the top bracket, the larger the percentage of superstar inventors will be attracted to that country.

true