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2. (10 points) is the unemployment rate for immigrants systematically different in states where there is a large immigrant population? Regressing the fraction of immigrants

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2. (10 points) is the unemployment rate for immigrants systematically different in states where there is a large immigrant population? Regressing the fraction of immigrants who are unemployed in state 5 on the fraction of foreign-born individuals in state 5: (number of unempioyed immigrantS) + (number of foreign born) + 9 number of immigrants 1 5 popniation s 5 yields coefficient estimates 30 = 22 and '91 = -0.265. Consider two hypothetical states A and B. Suppose state A has a share of foreign-born individuals that is 15 percentage points larger than that of state 8. How would you expect the immigrant unemployment rate to differ in these two states? Which is likely to be larger and by how much, in percentage points? If there are states in the data whose foreign-born shares actually differ by 15 percentage points, do you expect their immigrant unemployment rates to differ by exactly the amount that you just calculated? Explain

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