Determine how the workers who wish to maximize the present value of lifetime earnings calculate the net gains to migration.

Question

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Answer 1

Question

Chapter 8, Problem 1RQ

To determine

Determine how the workers who wish to maximize the present value of lifetime earnings calculate the net gains to migration.

Expert Solution & Answer

Explanation of Solution

According to the trend, employees calculate the value of employment opportunities available in the each of the alternative destinations and subtract the cost of moving from the origin to the destination. They then determine which option maximizes the net present value of lifetime earnings. This means that if the net gain to migration is positive, then the workers will move to another destination to maximize the present value of lifetime earnings. Here, improving the economic opportunities available in the destination will increase the net gains from migration and increases the likelihood that the worker will migrate. On the other hand, improving economic opportunities in the current region of residence decreases the net gain from the migration and decreases the worker’s probability of moving. In addition, an increase in migration costs reduces the net gains and decreases the probability of switch.

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Show how workers who wish to maximize the present value of lifetime earnings calculate the net gains to migration, and discuss how this net gain depends on incomes in the states of origin and destination and on migration costs.

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a)How the following factors influence the present value of net benefits of migration. i) Transportation costs b) If the elasticity of demand for type Z workers is -0.5, then an increase of wage rate from $45 to $55 will cause the quantity demanded to fall by _____ percent. c) What is the difference between geographic labour mobility and occupational labour mobility?

Answer 2

Question

Chapter 8, Problem 1RQ

To determine

Determine how the workers who wish to maximize the present value of lifetime earnings calculate the net gains to migration.

Expert Solution & Answer

Explanation of Solution

According to the trend, employees calculate the value of employment opportunities available in the each of the alternative destinations and subtract the cost of moving from the origin to the destination. They then determine which option maximizes the net present value of lifetime earnings. This means that if the net gain to migration is positive, then the workers will move to another destination to maximize the present value of lifetime earnings. Here, improving the economic opportunities available in the destination will increase the net gains from migration and increases the likelihood that the worker will migrate. On the other hand, improving economic opportunities in the current region of residence decreases the net gain from the migration and decreases the worker’s probability of moving. In addition, an increase in migration costs reduces the net gains and decreases the probability of switch.

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Answer 3

Question

Chapter 8, Problem 1RQ

To determine

Determine how the workers who wish to maximize the present value of lifetime earnings calculate the net gains to migration.

Expert Solution & Answer

Explanation of Solution

According to the trend, employees calculate the value of employment opportunities available in the each of the alternative destinations and subtract the cost of moving from the origin to the destination. They then determine which option maximizes the net present value of lifetime earnings. This means that if the net gain to migration is positive, then the workers will move to another destination to maximize the present value of lifetime earnings. Here, improving the economic opportunities available in the destination will increase the net gains from migration and increases the likelihood that the worker will migrate. On the other hand, improving economic opportunities in the current region of residence decreases the net gain from the migration and decreases the worker’s probability of moving. In addition, an increase in migration costs reduces the net gains and decreases the probability of switch.

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Answer 4

Question

Chapter 8, Problem 1RQ

To determine

Determine how the workers who wish to maximize the present value of lifetime earnings calculate the net gains to migration.

Expert Solution & Answer

Explanation of Solution

According to the trend, employees calculate the value of employment opportunities available in the each of the alternative destinations and subtract the cost of moving from the origin to the destination. They then determine which option maximizes the net present value of lifetime earnings. This means that if the net gain to migration is positive, then the workers will move to another destination to maximize the present value of lifetime earnings. Here, improving the economic opportunities available in the destination will increase the net gains from migration and increases the likelihood that the worker will migrate. On the other hand, improving economic opportunities in the current region of residence decreases the net gain from the migration and decreases the worker’s probability of moving. In addition, an increase in migration costs reduces the net gains and decreases the probability of switch.

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Answer 5

Chapter 8, Problem 1RQ

To determine

Determine how the workers who wish to maximize the present value of lifetime earnings calculate the net gains to migration.

Expert Solution & Answer

Explanation of Solution

According to the trend, employees calculate the value of employment opportunities available in the each of the alternative destinations and subtract the cost of moving from the origin to the destination. They then determine which option maximizes the net present value of lifetime earnings. This means that if the net gain to migration is positive, then the workers will move to another destination to maximize the present value of lifetime earnings. Here, improving the economic opportunities available in the destination will increase the net gains from migration and increases the likelihood that the worker will migrate. On the other hand, improving economic opportunities in the current region of residence decreases the net gain from the migration and decreases the worker’s probability of moving. In addition, an increase in migration costs reduces the net gains and decreases the probability of switch.

Answer 6

Chapter 8, Problem 1RQ

To determine

Determine how the workers who wish to maximize the present value of lifetime earnings calculate the net gains to migration.

Expert Solution & Answer

Explanation of Solution

According to the trend, employees calculate the value of employment opportunities available in the each of the alternative destinations and subtract the cost of moving from the origin to the destination. They then determine which option maximizes the net present value of lifetime earnings. This means that if the net gain to migration is positive, then the workers will move to another destination to maximize the present value of lifetime earnings. Here, improving the economic opportunities available in the destination will increase the net gains from migration and increases the likelihood that the worker will migrate. On the other hand, improving economic opportunities in the current region of residence decreases the net gain from the migration and decreases the worker’s probability of moving. In addition, an increase in migration costs reduces the net gains and decreases the probability of switch.

Answer 7

Chapter 8, Problem 1RQ

To determine

Determine how the workers who wish to maximize the present value of lifetime earnings calculate the net gains to migration.

Answer 8

Expert Solution & Answer

Explanation of Solution

According to the trend, employees calculate the value of employment opportunities available in the each of the alternative destinations and subtract the cost of moving from the origin to the destination. They then determine which option maximizes the net present value of lifetime earnings. This means that if the net gain to migration is positive, then the workers will move to another destination to maximize the present value of lifetime earnings. Here, improving the economic opportunities available in the destination will increase the net gains from migration and increases the likelihood that the worker will migrate. On the other hand, improving economic opportunities in the current region of residence decreases the net gain from the migration and decreases the worker’s probability of moving. In addition, an increase in migration costs reduces the net gains and decreases the probability of switch.