University of California, Davis Santiago Perez
Economics Spring 2026
Name: _____________________________ ID:_________________________________
ECN 117
Economics of international migrations
Problem Set 2
Please submit your answers online using Canvas. You can either type your answers or
submit a scanned version.
A. Multiple choice questions.
1. Consider the case in which immigrants and natives are complements. Further, assume that the
labor supply of natives is fully inelastic. An increase in the number of immigrants will:
a. Increase the wages of natives as well as the number of natives who are employed
b. Decrease the wages of natives but increase the number of natives who are employed
c. Increase the wages of natives but do not change the number of natives who are
employed
d. Decrease the wages of natives but do not change the number of natives who are
employed
e. Increase the wages of natives but decrease the number of natives who are employed
2. Card (1990) study on the impacts of Marielitos, estimates the effects of the 1980 Mariel boatlift
by comparing:
a. Wages of natives in Miami in 1979, to wages of natives in Miami in 1981
b. Change in wages of natives in Miami from 1979 to 1981, to change in wages of
natives in other US cities from 1979 to 1981
c. Wages of natives in Miami in 1981, to wages of natives in other US cities in 1981
d. Change in wages of natives in Miami from 1979 to 1981, to change in wages of natives in
Miami from 1977 to 1979
e. Change in wages of natives in Miami from 1979 to 1981, to change in wages of natives in
other US cities from 1977 to 1979
3. Which of the following are problems when using the spatial correlations approach to measure the
labor market impacts of immigration?
a. Native born workers are more likely to move out of cities that receive more immigration
b. Migrants might be more likely to move to cities experiencing an economic boom
c. Migrants might be more likely to move to cities experience an economic decline since
rents in these locations will be cheap
d. a and b
e. a, b and c
4. Which of the following are problems when using the skill cells approach to study the effects of
immigration on labor market outcomes?
a. Immigrants are more likely to get a visa if they are high-skilled
b. Immigrants tend to cluster into ethnic enclaves
1
, University of California, Davis Santiago Perez
Economics Spring 2026
Name: _____________________________ ID:_________________________________
c. Natives tend to move out from cities with higher inflows of immigrants
d. The skill premium for natives is higher than the skill premium for immigrants
e. None of the above
5. Which of the following are problems when using the spatial correlations approach to measure the
labor market impacts of immigration?
a. Native born workers are more likely to move out of cities that receive more immigration
b. Migrants might be more likely to move to cities experiencing an economic boom
c. Immigrants and natives might not be perfect substitutes
d. a and b
e. a, b and c
6. The unemployment rate in Miami was 5% in 1979 and 8% in 1981. The unemployment rate in
other US cities was 5% in 1979 and 6% in 1981. Assume you use these data and the difference-
in-differences method to measure the impact of the arrival of Marielitos (which took place in
1980) on Miami’s labor market. In that case, you would find that:
a. Marielitos increased unemployment in Miami by 2 percentage points
b. Marielitos increased unemployment in Miami by 3 percentage points
c. Marielitos increased unemployment in Miami by 5 percentage points
d. Marielitos increased unemployment in Miami by 8 percentage points
e. Marielitos had no effect on unemployment in Miami
7. According to our discussion in lecture, which of these groups is the most likely to be negatively
affected by immigration, and which of these groups is the least likely to be negatively affected?
a. Most likely: Natives in communication-intensive occupations. Least likely: Natives in
manual-intensive occupations
b. Most likely: Natives in manual-intensive occupations. Least likely: Natives in
communication-intensive occupations
c. Most likely: Natives in communication-intensive occupations. Least likely: Previous
immigrants in communication-intensive occupations
a. Most likely: Previous immigrants in manual-intensive occupations. Least likely: Natives
in communication-intensive occupations
d. Most likely: Previous immigrants in manual-intensive occupations. Least likely: Previous
immigrants in communication-intensive occupations
B. Exercise
Consider a situation in which there are just two countries: an Origin, and a Destination country.
Labor demand in the origin country is given by:
wo=10-Lo
Labor demand in the destination country is given by:
wd=14-Ld.
where Lo and Ld indicate the number of workers in the origin and destination countries, respectively.
2
Economics Spring 2026
Name: _____________________________ ID:_________________________________
ECN 117
Economics of international migrations
Problem Set 2
Please submit your answers online using Canvas. You can either type your answers or
submit a scanned version.
A. Multiple choice questions.
1. Consider the case in which immigrants and natives are complements. Further, assume that the
labor supply of natives is fully inelastic. An increase in the number of immigrants will:
a. Increase the wages of natives as well as the number of natives who are employed
b. Decrease the wages of natives but increase the number of natives who are employed
c. Increase the wages of natives but do not change the number of natives who are
employed
d. Decrease the wages of natives but do not change the number of natives who are
employed
e. Increase the wages of natives but decrease the number of natives who are employed
2. Card (1990) study on the impacts of Marielitos, estimates the effects of the 1980 Mariel boatlift
by comparing:
a. Wages of natives in Miami in 1979, to wages of natives in Miami in 1981
b. Change in wages of natives in Miami from 1979 to 1981, to change in wages of
natives in other US cities from 1979 to 1981
c. Wages of natives in Miami in 1981, to wages of natives in other US cities in 1981
d. Change in wages of natives in Miami from 1979 to 1981, to change in wages of natives in
Miami from 1977 to 1979
e. Change in wages of natives in Miami from 1979 to 1981, to change in wages of natives in
other US cities from 1977 to 1979
3. Which of the following are problems when using the spatial correlations approach to measure the
labor market impacts of immigration?
a. Native born workers are more likely to move out of cities that receive more immigration
b. Migrants might be more likely to move to cities experiencing an economic boom
c. Migrants might be more likely to move to cities experience an economic decline since
rents in these locations will be cheap
d. a and b
e. a, b and c
4. Which of the following are problems when using the skill cells approach to study the effects of
immigration on labor market outcomes?
a. Immigrants are more likely to get a visa if they are high-skilled
b. Immigrants tend to cluster into ethnic enclaves
1
, University of California, Davis Santiago Perez
Economics Spring 2026
Name: _____________________________ ID:_________________________________
c. Natives tend to move out from cities with higher inflows of immigrants
d. The skill premium for natives is higher than the skill premium for immigrants
e. None of the above
5. Which of the following are problems when using the spatial correlations approach to measure the
labor market impacts of immigration?
a. Native born workers are more likely to move out of cities that receive more immigration
b. Migrants might be more likely to move to cities experiencing an economic boom
c. Immigrants and natives might not be perfect substitutes
d. a and b
e. a, b and c
6. The unemployment rate in Miami was 5% in 1979 and 8% in 1981. The unemployment rate in
other US cities was 5% in 1979 and 6% in 1981. Assume you use these data and the difference-
in-differences method to measure the impact of the arrival of Marielitos (which took place in
1980) on Miami’s labor market. In that case, you would find that:
a. Marielitos increased unemployment in Miami by 2 percentage points
b. Marielitos increased unemployment in Miami by 3 percentage points
c. Marielitos increased unemployment in Miami by 5 percentage points
d. Marielitos increased unemployment in Miami by 8 percentage points
e. Marielitos had no effect on unemployment in Miami
7. According to our discussion in lecture, which of these groups is the most likely to be negatively
affected by immigration, and which of these groups is the least likely to be negatively affected?
a. Most likely: Natives in communication-intensive occupations. Least likely: Natives in
manual-intensive occupations
b. Most likely: Natives in manual-intensive occupations. Least likely: Natives in
communication-intensive occupations
c. Most likely: Natives in communication-intensive occupations. Least likely: Previous
immigrants in communication-intensive occupations
a. Most likely: Previous immigrants in manual-intensive occupations. Least likely: Natives
in communication-intensive occupations
d. Most likely: Previous immigrants in manual-intensive occupations. Least likely: Previous
immigrants in communication-intensive occupations
B. Exercise
Consider a situation in which there are just two countries: an Origin, and a Destination country.
Labor demand in the origin country is given by:
wo=10-Lo
Labor demand in the destination country is given by:
wd=14-Ld.
where Lo and Ld indicate the number of workers in the origin and destination countries, respectively.
2
