In the Standard Roy Model, Migration Can Lead to an Increase

question 3

Multiple Choice

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

• 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.

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Definitions:

Competence

The ability to perform work tasks successfully.

Potential

The inherent ability or capacity of an individual, object, or concept to develop into something more substantial or perform at a higher level in the future.

Coercive Power

A form of power that is based on the ability to deliver punishments or impose penalties for noncompliance.

Social Intelligence

The ability to understand and manage interpersonal relationships effectively, including the capacity to navigate social environments and understand the dynamics at play.