A big part of the debate over immigration is whether they create a fiscal burden -- i.e. whether they use welfare and other social services. The long run impact on fiscal burden depends on both the assimilation of immigrants and also their descendents (2nd and 3rd generation). An interesting case study is that of Vietnamese refugees following the Vietnam war. Many displaced Vietnamese families fled to the United States.

a.) Upon arrival, many Vietnamese refugees were randomly assigned to live in random towns and cities across the United States. Discuss how such random geographical assignment may have affected the assimilation of Vietnamese refugees. Compare this to the case where Vietnamese refugees were instead allowed to choose to live in ethnic enclaves.

b.) Consider the intergenerational matrix comparing Vietnamese refugees to their sons. Which quartile has exhibited the most upward mobility? Explain your answer.

	FATHERS
SONS		1st quartile	2nd quartile	3rd quartile	4th quartile
	1st quartile	50%	33%	10%	7%
	2nd quartile	10%	10%	40%	40%
	3rd quartile	25%	20%	35%	20%
	4th quartile	2%	10%	20%	68%

c.) Opponents of further immigration argue that Vietnamese immigrants have assimilated poorly. Their wages continue to lag behind that of natives, as does their education and english language ability. The only available data, however, relies on cross-sectional analyses. Using the lessons learned from Abramitzky, Boustan, and Erickson (2015), describe the two main problems with this reasoning. What should researchers do truly understand the assimilation of Vietnamese refugees?

d.) The Vietnam conflict was essentially a war between North and South Vietnam, with the North being supported by Communist nations such as China and the Soviet Union, while the South was supported by capitalist nations such the United States. One of the goals of communism, at least in theory, is to seek to change the wage distribution to a more equal, rather than unequal distribution. That is, under ideal communism, there is no variance in wages. Everyone earns the same wage. Assuming returns to skills are highly correlated between the US and Vietnam, and