Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

One common way to measure the benefits of rural to urban migration is to compare the wages of migrants to urban areas to the wages

One common way to measure the benefits of rural to urban migration is to compare the wages of migrants to urban areas to the wages of people who stay in rural areas. Even accounting for cost of living differences (e.g. the fact that rents and consumer prices are more expensive in cities), this comparison finds farge wage differences, suggesting that there are important benefits of migration. Why might this approach not lead to accurate estimates of the benefits of migration? Explain, using the concepts of "selection" or "Threats to identification" in your answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Behavioral Economics

Authors: David R. Just

1st edition

0470596228, 978-0470596227

More Books

Students also viewed these Economics questions

Question

7. One or other combination of 16.

Answered: 1 week ago