4.118 points] Source countries of migrants to the U.S. have changed pretty radic

Question

4.118 points] Source countries of migrants to the U.S. have changed pretty radically over the decades as was evident in the 1994 article by Borjas. The shift from immigrants of mostly European ancestry to immigrants of almost entirely non-European ancestry is pretty clear in the data. This could be a result of change in supply (incentives to move to the U.S.) or of a change in demand (changes in U.S. policy regarding immigrants) or both. I want you to think about both as possible explanations of the change in composition of immigrants. Incentives to move to the US would be a function of wage differentials (labor scarcity), or differences in cost of natural resources (land scarcity) and migration costs. Migration costs are related to travel costs which depend on both the distance between countries (which are constant over time) and transportation technology (which is not constant over time). Migration costs are lower for those with relatives already in the U.S. In case you are unaware the Atlantic water barrier is much smaller than the Pacific water barrier and land is more difficult to traverse than either water or air Here is a very crude description of U.S. policy (demand factors) Period A: no binding restrictions Period B: limits by country with more spots for compatriots of early (Period A) immigrants Period C: limits by hemisphere, loosened for close relatives of prior (Period B) immigrants a) In Period A, transportation costs to the U.S. were very, very high especially for goods or b) In Period B, transportation costs are falling and there is more trade in goods albeit with c) In period C, transportation costs continue to fall and there is a much larger volume of trade people far from a port. How might you describe the interplay factors that resulted in immigrants mostly from Europe-specifically Northern and Western Europe. significant trade barriers. How might you describe the interplay factors that resulted in immigrants still mostly from Europe but including more from Eastern Europe? in goods (especially between U.S. and Europe) and much lower trade barriers. How might this explain a decline in immigration from Europe and increase from the Western Hemisphere and Asia?

Explanation / Answer

a. The interplay factors that resulted in immigransts mostly from the Europe are as:

1. The labour scarcity.

2. The land scarcity.

3. Transportation of the technology.

b. The interplay factors that resulted in immigransts mostly from the Eastern Europe are as:

1. Low cost.

2. Too much dependence on supply.

3. Fall in the trade.

c. The interplay factors that resulted in immigransts mostly from the Europe and the incease from the Western Hemisphere and Asia are as:

1. Low trade facilities.

2. Trade barriers.

3. Cost of the Transportation.

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