Chapter 22: Immigration
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29 Terms
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Efficiency gains
________ from migration- The same number of workers- rearranged among countries- produces greater total output and income after migration than before migration.
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Economic immigrants
International migrants motivated by economic gain
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Legal immigrants
Immigrants who are allowed to live + work in US
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H1-B provision
Allows high-skilled workers to enter + work in the US for 6 years
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Illegal immigrants
Immigrants who arrive illegally or enter legally on temporary visas + don’t leave
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Human capital
Stock of knowledge, know-how, and skills that enables a person to be productive + earn income
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Beaten paths
Routes taken previously by family, relatives, friends
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Backflows
Return migration to home country
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Skill transferability
Skills that are transferable between employers in different countries
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Economic immigrants
International migrants motivated by economic gain
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Legal immigrants
Immigrants who are allowed to live + work in US
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H1-B provision
Allows high-skilled workers to enter + work in the US for 6 years
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Illegal immigrants
Immigrants who arrive illegally or enter legally on temporary visas + dont leave
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Human capital
Stock of knowledge, know-how, and skills that enables a person to be productive + earn income
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Beaten paths
Routes taken previously by family, relatives, friends
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Backflows
Return migration to home country
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Skill transferability
Skills that are transferable between employers in different countries
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Self-selection
Because some migrants choose to move while others with similar skills do not, it is possible that those who move possess greater motivation for personal economic gain and greater willingness to sacrifice current consumption for higher levels of later consumption
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Efficiency gains from migration
The same number of workers-rearranged among countries-produces greater total output and income after migration than before migration
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Brain drain
Emigration of highly educated workers
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Remittances
Money transfer to home country
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Negative self-selection
Movers are less capable and perhaps less motivated than similarly educated people who have jobs and stay in the origin nation
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Compensating wage differential
Wage premium to compensate for undesirable work
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Self-selection
Because some migrants choose to move while others with similar skills do not, it is possible that those who move possess greater motivation for personal economic gain and greater willingness to sacrifice current consumption for higher levels of later consumption. If so, these migrants may overcome the problem of imperfect skill transferability and eventually outdo domestic-born workers in wage and salary advancement
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Efficiency gains from migration
The same number of workers—rearranged among countries—produces greater total output and income after migration than before migration
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Brain drain
Emigration of highly educated workers
27
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Remittances
Money transfer to home country
28
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Negative self-selection
Movers are less capable and perhaps less motivated than similarly educated people who have jobs and stay in the origin nation
29
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Compensating wage differential
Wage premium to compensate for undesirable work