Question 1

Which of the following best captures how job turnover is related to the age-earnings profile?

Accepted Answer

A)  Job separations, both quits and layoffs, are associated with a lower profile. 
B)  Job separations, both quits and layoffs, are associated with a higher profile. 
C)  Job quits are associated with a higher profile, while layoffs are associated with a lower profile. 
D)  Layoffs are associated with a higher profile, while job quits are associated with a lower profile. 
E)  The age-earnings profile is unrelated to job turnover because anyone who quits a job or is laid off no longer earns a wage. 
A)  Job separations, both quits and layoffs, are associated with a lower profile. 
B)  Job separations, both quits and layoffs, are associated with a higher profile. 
C)  Job quits are associated with a higher profile, while layoffs are associated with a lower profile. 
D)  Layoffs are associated with a higher profile, while job quits are associated with a lower profile. 
E)  The age-earnings profile is unrelated to job turnover because anyone who quits a job or is laid off no longer earns a wage. C

Question 2

Which of the following statements is consistently associated with the standard migration model?

Accepted Answer

A)  Return migration occurs only when the mover regrets having made the initial move. 
B)  Repeat migration occurs only when the mover regrets having made the initial move. 
C)  Repeat migration occurs only when the mover is moving for job-related reasons. 
D)  The decision to move is expected to increase the household's overall utility. 
E)  Moving for job reasons is always done at the expense of family desires. 
A)  Return migration occurs only when the mover regrets having made the initial move. 
B)  Repeat migration occurs only when the mover regrets having made the initial move. 
C)  Repeat migration occurs only when the mover is moving for job-related reasons. 
D)  The decision to move is expected to increase the household's overall utility. 
E)  Moving for job reasons is always done at the expense of family desires. D

Question 3

In the standard Roy model, migration can lead to an increase in average skills in both locations. What is necessary for this to happen?

Accepted Answer

A)  The workers who migrate from the source country are below-average in skill relative to the average source country person but are above-average in skill relative to the average destination country person. 
B)  The workers who migrate from the source country are above-average in skill relative to the average source country person but are below-average in skill relative to the average destination country person. 
C)  The highest skilled workers migrate from the source country to the destination country. 
D)  The lowest skilled workers migrate from the source country to the destination country. 
E)  Migration leads to an increase in average skills in both locations whenever there is positive selection. 
A)  The workers who migrate from the source country are below-average in skill relative to the average source country person but are above-average in skill relative to the average destination country person. 
B)  The workers who migrate from the source country are above-average in skill relative to the average source country person but are below-average in skill relative to the average destination country person. 
C)  The highest skilled workers migrate from the source country to the destination country. 
D)  The lowest skilled workers migrate from the source country to the destination country. 
E)  Migration leads to an increase in average skills in both locations whenever there is positive selection. A

Question 4

Which of the following is not a reason why the labor market experiences job turnover?

Accepted Answer

A)  Workers differ in their abilities. 
B)  Firms differ in their amenities and working conditions. 
C)  Economic conditions can dictate that a firm reduce its number of workers. 
D)  Workers might want to change jobs after accumulating general training or education. 
E)  All of these are reasons why the labor market can experience job turnover. 
A)  Workers differ in their abilities. 
B)  Firms differ in their amenities and working conditions. 
C)  Economic conditions can dictate that a firm reduce its number of workers. 
D)  Workers might want to change jobs after accumulating general training or education. 
E)  All of these are reasons why the labor market can experience job turnover.

Question 5

Which is not a factor that generates return and/or repeat migration flows?

Accepted Answer

A)  A worker realizes after the move that she or he miscalculated labor market opportunities in the new location. 
B)  A worker realizes after the move that she or he does not like the weather in the new location. 
C)  A worker moved initially in order to move up the career ladder in her or his company. 
D)  A worker lands a job after the move that pays a wage that is much greater than originally expected. 
E)  A worker realizes after the move that the monetary and psychic costs of moving are not as large as she or he originally calculated. 
A)  A worker realizes after the move that she or he miscalculated labor market opportunities in the new location. 
B)  A worker realizes after the move that she or he does not like the weather in the new location. 
C)  A worker moved initially in order to move up the career ladder in her or his company. 
D)  A worker lands a job after the move that pays a wage that is much greater than originally expected. 
E)  A worker realizes after the move that the monetary and psychic costs of moving are not as large as she or he originally calculated.

Question 6

Which of the following is a sign of a well-functioning labor market?

Accepted Answer

A)  a high degree of labor mobility (job losses and job gains) 
B)  a constant unemployment rate 
C)  equal pay for all workers 
D)  equal pay in all regions 
E)  All workers have a college education. 
A)  a high degree of labor mobility (job losses and job gains) 
B)  a constant unemployment rate 
C)  equal pay for all workers 
D)  equal pay in all regions 
E)  All workers have a college education.

Question 7

A couple is considering moving to Tampa from Chicago. The cost of moving for Crystal is $300 while the cost of moving for Amelia is $600. Crystal earns $500 in Chicago and $550 in Tampa. Amelia earns $200 in Chicago and $1000 in Tampa. Will they move as a couple?

Accepted Answer

A)  Yes, because they would earn $1,550 in Tampa but only $700 in Chicago. 
B)  Yes, because they receive a net gain of $150 by moving to Tampa. 
C)  Yes, because the joint cost of moving ($900) exceeds what they could earn in Chicago ($700). 
D)  No, because they would lose $50 by moving to Tampa when all benefits and costs are considered. 
E)  No, because neither person would choose to move to Tampa on their own. 
A)  Yes, because they would earn $1,550 in Tampa but only $700 in Chicago. 
B)  Yes, because they receive a net gain of $150 by moving to Tampa. 
C)  Yes, because the joint cost of moving ($900) exceeds what they could earn in Chicago ($700). 
D)  No, because they would lose $50 by moving to Tampa when all benefits and costs are considered. 
E)  No, because neither person would choose to move to Tampa on their own.

Question 8

Which of the following regarding internal migration in the United States is not true?

Accepted Answer

A)  Migration is more common among younger workers compared to older workers. 
B)  Migration is more common among educated workers compared to uneducated workers. 
C)  Migration equalizes wages across regions. 
D)  Empirically the mystery is why there is not more internal migration, not why there is not less. 
E)  Repeat and return migration are rational decisions and routinely occur. 
A)  Migration is more common among younger workers compared to older workers. 
B)  Migration is more common among educated workers compared to uneducated workers. 
C)  Migration equalizes wages across regions. 
D)  Empirically the mystery is why there is not more internal migration, not why there is not less. 
E)  Repeat and return migration are rational decisions and routinely occur.

Question 9

Which of the following is least likely to affect the net gain to migration?

Accepted Answer

A)  an improvement in economic opportunities in the destination state 
B)  an improvement in economic opportunities in the source state 
C)  an increase in migration costs 
D)  changing one's preferences for living in different places 
E)  a general increase in the national price level 
A)  an improvement in economic opportunities in the destination state 
B)  an improvement in economic opportunities in the source state 
C)  an increase in migration costs 
D)  changing one's preferences for living in different places 
E)  a general increase in the national price level

Question 10

Which of the following statements about migration is not true?

Accepted Answer

A)  Migration is greater among younger workers compared to older workers because older workers have less time over which to benefit from the returns to migration. 
B)  Migration is greater among highly educated workers compared to less educated workers because the returns to education for highly educated workers vary more from location to location than for workers with low levels of education. 
C)  Migration is greater among married couples compared to single-person households because migration costs are less for married couples. 
D)  A tied-stayer is someone who would move if he or she were single. 
E)  Migration is greater among people who like the adventure of moving compared to people who do not like the adventure of moving because the psychic costs of moving are less for those who enjoy moving. 
A)  Migration is greater among younger workers compared to older workers because older workers have less time over which to benefit from the returns to migration. 
B)  Migration is greater among highly educated workers compared to less educated workers because the returns to education for highly educated workers vary more from location to location than for workers with low levels of education. 
C)  Migration is greater among married couples compared to single-person households because migration costs are less for married couples. 
D)  A tied-stayer is someone who would move if he or she were single. 
E)  Migration is greater among people who like the adventure of moving compared to people who do not like the adventure of moving because the psychic costs of moving are less for those who enjoy moving.

Question 11

Which of the following is the most likely reason the age-earnings profile is steeper for immigrants than it is for natives in the United States for ages 20 to 45?

Accepted Answer

A)  The minimum wage does not apply to immigrants until they have resided in the United States for three years. 
B)  Immigrants have less leverage in negotiating wage increases. 
C)  Immigrant wages increase rapidly when they first come to the United States and begin developing stronger English skills. 
D)  Immigrants under the age of 45 must earn more money in order to pay for the legal expenses associated with becoming a citizen. 
E)  Immigrants under the age of 45 tend to remit a large portion of their earnings to their relatives who did not immigrate. 
A)  The minimum wage does not apply to immigrants until they have resided in the United States for three years. 
B)  Immigrants have less leverage in negotiating wage increases. 
C)  Immigrant wages increase rapidly when they first come to the United States and begin developing stronger English skills. 
D)  Immigrants under the age of 45 must earn more money in order to pay for the legal expenses associated with becoming a citizen. 
E)  Immigrants under the age of 45 tend to remit a large portion of their earnings to their relatives who did not immigrate.

Question 12

Which of the following is true?

Accepted Answer

A)  A person might choose to not move because their family is better off by not moving, even though the person would individually be better off by moving. 
B)  A family will move even though as a unit they are better off staying as long as at least one member of the family is made better off by moving. 
C)  When a family migrates, there may be both tied movers and tied stayers in the family. 
D)  A repeat mover must have made a mistake in the initial move. 
E)  Cultural assimilation is not included in migration costs. 
A)  A person might choose to not move because their family is better off by not moving, even though the person would individually be better off by moving. 
B)  A family will move even though as a unit they are better off staying as long as at least one member of the family is made better off by moving. 
C)  When a family migrates, there may be both tied movers and tied stayers in the family. 
D)  A repeat mover must have made a mistake in the initial move. 
E)  Cultural assimilation is not included in migration costs.

Question 13

When a firm pays higher wages, it is likely that doing so will

Accepted Answer

A)  increase turnover. 
B)  lower the firm's ability to attract high-skill workers. 
C)  encourage workers to stay on the job for a long time. 
D)  decrease worker utility. 
E)  decrease the quality of the potential worker pool. 
A)  increase turnover. 
B)  lower the firm's ability to attract high-skill workers. 
C)  encourage workers to stay on the job for a long time. 
D)  decrease worker utility. 
E)  decrease the quality of the potential worker pool.

Question 14

Cross-sectional analysis of age-earnings profiles of natives and immigrants in the United States tends to reveal that immigrants earn

Accepted Answer

A)  lower wages on average than natives at all ages. 
B)  lower wages on average than natives at young ages but earn equivalent to natives by age 45 and thereafter. 
C)  lower wages on average than natives at young ages but earn about 10% more than natives by age 45 and thereafter. 
D)  the same on average as natives at all ages. 
E)  about 10% more on average than natives at young ages but this premium disappears by age 45 and thereafter. 
A)  lower wages on average than natives at all ages. 
B)  lower wages on average than natives at young ages but earn equivalent to natives by age 45 and thereafter. 
C)  lower wages on average than natives at young ages but earn about 10% more than natives by age 45 and thereafter. 
D)  the same on average as natives at all ages. 
E)  about 10% more on average than natives at young ages but this premium disappears by age 45 and thereafter.

Question 15

Assuming the standard migration model is correct, estimates of the cost of moving can be as high as $300,000. What is likely the worst explanation for what this expense is so high?

Accepted Answer

A)  The psychic costs of moving, for example, the uncertainty of making friends and adjusting to a new city, may be quite high for some people. 
B)  People may place a high cost on leaving family and friends. 
C)  People may attach a very high utility to the social amenities in one's birthplace. 
D)  Moving companies typically charge tens of thousands of dollars to transport household goods from one location to another. 
E)  People may place a high utility value on the cultural benefits and assimilation of their current location. 
A)  The psychic costs of moving, for example, the uncertainty of making friends and adjusting to a new city, may be quite high for some people. 
B)  People may place a high cost on leaving family and friends. 
C)  People may attach a very high utility to the social amenities in one's birthplace. 
D)  Moving companies typically charge tens of thousands of dollars to transport household goods from one location to another. 
E)  People may place a high utility value on the cultural benefits and assimilation of their current location.

Question 16

Which of the following is the most likely explanation for why Mexican immigrants earn 46% less than native workers while Canadian immigrants earn 36% more than native workers in the United States?

Accepted Answer

A)  The immigrant flow is positively selected from Mexico but negatively selected from Canada. 
B)  The immigrant flow is negatively selected from Mexico but positively selected from Canada. 
C)  The immigrant flow is positive from both countries, but there are fewer Canadian immigrants than there are Mexican immigrants. 
D)  The immigrant flow is negative from both countries, but there are fewer Canadian immigrants than there are Mexican immigrants. 
E)  The immigrant flow is negative from both countries, but there are more Canadian immigrants than there are Mexican immigrants. 
A)  The immigrant flow is positively selected from Mexico but negatively selected from Canada. 
B)  The immigrant flow is negatively selected from Mexico but positively selected from Canada. 
C)  The immigrant flow is positive from both countries, but there are fewer Canadian immigrants than there are Mexican immigrants. 
D)  The immigrant flow is negative from both countries, but there are fewer Canadian immigrants than there are Mexican immigrants. 
E)  The immigrant flow is negative from both countries, but there are more Canadian immigrants than there are Mexican immigrants.

Question 17

What is a possible explanation as to why workers who have been on the job for a long time earn more than newly hired workers?

Accepted Answer

A)  Workers in bad job matches tend to stay on the job longer. 
B)  Workers in long-lasting job matches accumulate specific training over time, which increases the workers' productivity. 
C)  The positive effects of general training on education erode over time. 
D)  Young workers are more productive than older workers. 
E)  U.S. law requires older workers to be paid more than younger workers. 
A)  Workers in bad job matches tend to stay on the job longer. 
B)  Workers in long-lasting job matches accumulate specific training over time, which increases the workers' productivity. 
C)  The positive effects of general training on education erode over time. 
D)  Young workers are more productive than older workers. 
E)  U.S. law requires older workers to be paid more than younger workers.

Question 18

Which of the following statements about self-selection and immigration flows into the United States is false?

Accepted Answer

A)  If the flow of immigrants is currently positively selected, increasing the costs to immigration will likely make the future flow of immigrants even more positively selected. 
B)  Negative selection results in low-skilled workers coming to the United States. 
C)  High-skilled workers in foreign countries will not always choose to migrate to the United States. 
D)  Negative selection occurs when the United States offers a greater return to skill at high skill levels than the source country. 
E)  Positive selection results in highly skilled workers coming to the United States. 
A)  If the flow of immigrants is currently positively selected, increasing the costs to immigration will likely make the future flow of immigrants even more positively selected. 
B)  Negative selection results in low-skilled workers coming to the United States. 
C)  High-skilled workers in foreign countries will not always choose to migrate to the United States. 
D)  Negative selection occurs when the United States offers a greater return to skill at high skill levels than the source country. 
E)  Positive selection results in highly skilled workers coming to the United States.

Question 19

If a two-person household moves from Miami to Atlanta, which of the following can describe the household?

Accepted Answer

A)  Both members of the households are tied movers. 
B)  One member of the household is a tied stayer. 
C)  One member of the household is a tied mover while the other is a tied stayer. 
D)  Neither member of the household is a tied mover. 
E)  Neither member of the household is a tied stayer. 
A)  Both members of the households are tied movers. 
B)  One member of the household is a tied stayer. 
C)  One member of the household is a tied mover while the other is a tied stayer. 
D)  Neither member of the household is a tied mover. 
E)  Neither member of the household is a tied stayer.

Question 20

Suppose the age-wage profile of immigrants has been increasing over time. That is, the age-wage profile of immigrants in the 1990s is higher than the age-wage profile of immigrants in the 1980s, which is in turn higher than the wage-age profile of immigrants in the 1970s. In this case, if one uses cohort analysis to estimate the age-wage profile of immigrants, which of the following is possible to find?

Accepted Answer

A)  a negative return to moving costs 
B)  a horizontal age-wage profile 
C)  a positively skewed wage distribution 
D)  a negatively skewed wage distribution 
E)  negatively selected immigration 
A)  a negative return to moving costs 
B)  a horizontal age-wage profile 
C)  a positively skewed wage distribution 
D)  a negatively skewed wage distribution 
E)  negatively selected immigration

Which of the following best captures how job turnover is related to the age-earnings profile?

Which of the following statements is consistently associated with the standard migration model?

In the standard Roy model, migration can lead to an increase in average skills in both locations. What is necessary for this to happen?

Which of the following is not a reason why the labor market experiences job turnover?

Which is not a factor that generates return and/or repeat migration flows?

Which of the following is a sign of a well-functioning labor market?

A couple is considering moving to Tampa from Chicago. The cost of moving for Crystal is $300 while the cost of moving for Amelia is $600. Crystal earns $500 in Chicago and $550 in Tampa. Amelia earns $200 in Chicago and $1000 in Tampa. Will they move as a couple?

Which of the following regarding internal migration in the United States is not true?

Which of the following is least likely to affect the net gain to migration?

Which of the following statements about migration is not true?

Which of the following is the most likely reason the age-earnings profile is steeper for immigrants than it is for natives in the United States for ages 20 to 45?

Which of the following is true?

When a firm pays higher wages, it is likely that doing so will

Cross-sectional analysis of age-earnings profiles of natives and immigrants in the United States tends to reveal that immigrants earn

Assuming the standard migration model is correct, estimates of the cost of moving can be as high as $300,000. What is likely the worst explanation for what this expense is so high?

Which of the following is the most likely explanation for why Mexican immigrants earn 46% less than native workers while Canadian immigrants earn 36% more than native workers in the United States?

What is a possible explanation as to why workers who have been on the job for a long time earn more than newly hired workers?

Which of the following statements about self-selection and immigration flows into the United States is false?

If a two-person household moves from Miami to Atlanta, which of the following can describe the household?

Introduction to Labor Economics

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Market Discrimination

Labor Unions

Incentive Pay

Unemployment

Filters

Exam 8: Labor Mobility

Which of the following best captures how job turnover is related to the age-earnings profile?

Which of the following statements is consistently associated with the standard migration model?

In the standard Roy model, migration can lead to an increase in average skills in both locations. What is necessary for this to happen?

Which of the following is not a reason why the labor market experiences job turnover?

Which is not a factor that generates return and/or repeat migration flows?

Which of the following is a sign of a well-functioning labor market?

A couple is considering moving to Tampa from Chicago. The cost of moving for Crystal is $300 while the cost of moving for Amelia is $600. Crystal earns $500 in Chicago and $550 in Tampa. Amelia earns $200 in Chicago and $1000 in Tampa. Will they move as a couple?

Which of the following regarding internal migration in the United States is not true?

Which of the following is least likely to affect the net gain to migration?

Which of the following statements about migration is not true?

Which of the following is the most likely reason the age-earnings profile is steeper for immigrants than it is for natives in the United States for ages 20 to 45?

Which of the following is true?

When a firm pays higher wages, it is likely that doing so will

Cross-sectional analysis of age-earnings profiles of natives and immigrants in the United States tends to reveal that immigrants earn

Assuming the standard migration model is correct, estimates of the cost of moving can be as high as $300,000. What is likely the worst explanation for what this expense is so high?

Which of the following is the most likely explanation for why Mexican immigrants earn 46% less than native workers while Canadian immigrants earn 36% more than native workers in the United States?

What is a possible explanation as to why workers who have been on the job for a long time earn more than newly hired workers?

Which of the following statements about self-selection and immigration flows into the United States is false?

If a two-person household moves from Miami to Atlanta, which of the following can describe the household?

Introduction to Labor Economics

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Market Discrimination

Labor Unions

Incentive Pay

Unemployment

Filters