The following questions are based on â€œIntergenerational Transmission of Abilities and Self-selection of Mexican Immigrants,â€
1. Describe how earnings of Mexican immigrants evolved over 3 generations.
2. What story does the paper tell to explain these observations? How does it diï¬€er from Borjasâ€™ (1993) conclusions and why?
3. Explain how the author models (i) education decision and (ii) immigration decision. What is the meaning of zIg, Î¾zIg, and Ïˆ? Provide examples.
4. When discussing the role of altruism on pages 537-538, the author says â€The altruism drives the positive selection, and the greater it is, the stronger is the positive selection.â€ What does the author mean and how does it work?
The following questions are based on the paper â€A Theory of The Worst Form of Child Labour,â€
1. In one short paragraph, state the main message of the paper and provide intuition using an example.
2. List the key features of the model: agents, endowments, preferences, technologies, decisions and markets. Try to do this without using formulas, characterizing the properties of relevant functions in words.
3. In the individual optimization problem (10), what trade-oï¬€s does the parent face when allocating time between school and work in a given industry?
4. Brieï¬‚y explain how wages in the two industries are determined in equilibrium. Provide an intuitive explanation (in your own words!) on why the wage in industry B must exceed the wage in industry A in equilibrium.