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SebKom SebKom
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6 years ago
City X has a large fraction of illegal immigrants; its native high school dropouts earn $17 an hour. City Y has a small fraction of illegal immigrants; its native high school dropouts earn $18 an hour. This suggests that illegal immigrants have a small effect on drop-out wages. Which of the following, if true and present, would suggest the true negative effect of illegal immigrants on dropout wages is much larger?
A) Illegal immigrants tend to locate in cities with lots of low-wage jobs.
B) Illegal immigrants and high school dropouts are gross complements.
C) Falling wages induces a capital inflow into a city.
D) A large fraction of illegal immigrants in a city causes native high-school drop outs to move out of the city and move where there are fewer illegal immigrants.
Textbook 
Modern Labor Economics: Theory and Public Policy

Modern Labor Economics: Theory and Public Policy


Edition: 12th
Authors:
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ShadiasShadias
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6 years ago
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