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Suppose there is currently positive selection of immigrants to the United States. What would happen to immigration to the United States if the return to skills were to fall in the United States?


A) The same selection of immigrants would continue to come to the United States.
B) The selection of immigrants to the United States would switch from being positive to being negative.
C) The selection would remain positive but with more workers immigrating to the United States.
D) The selection would remain positive, but the average skills of immigrants would fall.
E) The selection would remain positive, but the average skills of immigrants would increase.

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Why are high-power couples (i.e., both people have at least a college degree) more likely to migrate to large urban areas compared to low-power couples (i.e., neither person has a college degree) ?


A) Urban areas offer a greater array of job opportunities and wages for educated people compared to rural areas and, therefore, living in an urban area reduces the likelihood of someone in a high-power couple being a tied-mover or tied-stayer.
B) Urban areas offer more college opportunities and at a lower price than typical rural areas.
C) High-power couples are not very willing to move after college.
D) Low-power couples cannot afford the costs associated with moving to an urban area.
E) There are very few low-skill jobs in urban areas.

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When considering whether to migrate to a particular location, one calculates the present value of living in that location. How does one best calculate the present value of living in a location?


A) Determine the starting wage one will earn in the location.
B) Sum up the annual incomes one will earn in the location.
C) Sum the annual discounted incomes one will earn in the location.
D) Subtract one's wage in the current location from the starting wage in the new location.
E) Subtract one's wage in the new location from the starting wage in the current location.

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The Roy model concerns


A) the skill-selection associated with immigration flows.
B) specific on-the-job training.
C) general training.
D) the age-earnings profile.
E) the cost-benefit analysis of layoffs or quits.

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Compared to older workers with several years of experience with one firm, newly hired young workers typically


A) have higher turnover.
B) have more on-the-job training.
C) have more experience.
D) are likely to stay with their job longer.
E) tend to earn more than their experienced colleagues.

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Which of the following is not likely to prevent some people from migrating?


A) not wanting to face high financial costs associated with migrating
B) not wanting to leave their family and friends
C) having a spouse who has a very well-paying job in the current location
D) having a lucrative job offer in a different city
E) having a teenage child who does not want to change high schools

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The Mincer earnings function is used to estimate


A) ability bias.
B) the signaling effect.
C) the social return to schooling.
D) the value of the marginal product of labor.
E) the age-earnings profile.

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Negative selection in a migration model means that


A) immigrants from the source country are highly skilled relative to labor in the destination country.
B) immigrants from the source country are not highly skilled relative to labor in the destination country.
C) all workers in the source country would earn a higher return on their skills if they would remain in the source country.
D) all workers in the source country would earn a higher return on their skills if they would immigrate to the destination country.
E) anyone in the source country who can afford the cost of migrating to the destination country will do so.

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Which one of the following statements regarding job turnover in the U.S. labor market is false?


A) The quit rate is almost always higher than the layoff rate.
B) The overall separation rate is much higher for younger workers than older workers.
C) The overall separation rate falls with tenure on the job.
D) Workers who have a lot of seniority are likely to switch to a different firm when their wage-age profile begins to flatten out.
E) The quit rate is higher than the layoff rate for both young and old workers when they are in the first few years on a job.

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Why is it hypothesized that the slope of the age-earnings profile is likely steeper for workers who remain with their job (i.e., job stayers) compared to workers who experience job separation (i.e., quits and layoffs) ?


A) Workers with longer tenure at their current firm have invested more in valuable firm-specific training.
B) Workers who experience job turnover, both quits and layoffs, are less productive than job stayers.
C) Workers who experience a job separation experience a jump down in the age-earning profile, which then must be flatter by construction.
D) Workers who experience a job separation must pay for their own job retraining.
E) None of the above explain why the age-earnings profile is steeper for job stayers compared to workers who experience job separation.

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