ECON 139 set 10

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ECON 139 set 10

Lecture number:
Lecture Note
University of California, San Diego
Econ 139 - Labor Economics

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Page 1 of 9 June 2nd, 2015 Labor Mobility (continuing) Some add-ons to the previous notes: ECON 139 SP ‘15 Antonovics 9 6-2-15 1 Page 2 of 9 Today’s Lecture: Page 3 of 9 Positive and Negative Selection • PANEL A: positive selection. • PANEL B: negative selection Implications • Immigrants from countries with egalitarian income distributions (like Sweden) are positively selected. • Immigrants from countries with high levels of inequality (like Mexico) are negatively selected. • Despite the fact that these prediction conform to our stereotypes about immigrants, there is considerable evidence that immigrants from most countries are positively selected. – Maybe because moving costs are much higher for those with low levels of skill. Migration Costs No one should migrate from the US to Sweden, and everyone from Sweden should migrate from Sweden to the US. But this picture assumes that migration costs are zero. The red line depicts wages in the US net of migration costs. Migration from Sweden to the US if Skill>Sp

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