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

question 18

Multiple Choice

In a 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.