Question

(TRUE/FALSE/UNCERTAIN QUESTION - Please explain your reasoning)

If competition for jobs increase in the low-skill labor market following an influx of low-skilled immigrants, then native-born young people may increase their demand for higher education; because they believe that the returns to staying low-skilled have declined.

Answer 1

Answer.

TRUE

Because current research have observed that while unskilled immigrants can also initially decrease average incomes and wages in the host country, within the longer term they and their offspring can assist accelerate the boom of earnings in step with capita, furnished they turn out to be integrated. In an try to compare the lengthy-term impact of unskilled migration, Card (2005) examines the earnings of first technology immigrants through the years and additionally the educational attainment of their kids. He unearths that first thirteen technology migrants close best about a quarter of the forty percent-gap in profits with admire to natives, but their youngsters have a tendency to do barely better than the children of natives. there may be a robust correlation between the schooling stages of children and people in their parents, but even the youngsters of Mexican immigrants, whose parents have little or no schooling on average, near a very huge a part of the schooling gap with appreciate to the children of natives. A current cross-country examine by the OECD (2009) discovered a marked distinction in the success of children of migrants in the USA and different traditional immigration international locations, which matched that of the kids of natives, and those of youngsters of migrants in Europe wherein they underperformed by means of a wide margin, after controlling for socio-monetary differences. consequences regular with those findings were said by using Dustmann (2011) and by means of Hao and Woo (2012).