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GEOG 2210 (29)
J.Wright (29)


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Langara College
GEOG 2210

A MODEL OF IMMIGRATION ● the model is to examine the interaction/relationship between two countries and their immigration markets...the author asserts that adding more countries into the model would complicate it. However adding more countries in the model would not retract from the overall message of the theory. Proceed. ● Borjas: income-maximization is “a necessary condition for utility maximization” (however there are other factors such as culture, weather, crime rate) ● “income maximization theorem” is testable THUS it is justified in explaining other processes in the world ● [Borjas inserts a bunch of lame things with logarithms and coefficients, but this is his argument minus the math...] ○ With the crazy math that Borjas uses...he argues that individual behaviour is influenced by the variable earnings they could receive in different countries … so migrants will go to the host country that will offer them the largest earnings...individuals will remain in their own countries when the costs exceed the benefits ● What determines the size of flow? ○ emigration rate (exit rate) is higher the greater the mean income is in the host country ○ the emigration rate is lower when costs to leave and migrate are high ○ emigration rate is higher when they payoff in the host country is higher than in the source country ○ international labor flows “no different from the flows of goods implied by international trade theory” ○ “workers, like goods, flow to the country that is willing to pay the most for them” ○ positive selection exists when immigrants have above average abilities in the source and host countries ■ earnings of persons emigrating to source country are above average; immigrants in host country are ALSO average ■ immigrants will outperform demographically similar natives upon arrival if earnings across two countries is sufficiently high and income is more dispersed in the host country ● this occurs because the source country is taxing
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