The following data show annual earnings (in 1000$) of immigrants to the U.S. by age in each of three Census years:

Age Year

1980 1990 2000

25 $30 $30 $25

35 $50 $35 $35

45 $70 $55 $40

a. (13 pts.) Calculate the rate of earnings growth (the rate of assimilation) that is suggested by looking at the data from the 1980 Census only. What do you(r) calculations suggest about immigrant assimilation into the U.S. labor market, assuming that native workers' earnings grow by 50 percent between ages 25 and 35, and by 1/3 between ages 35 and 45?

b. (13 pts.) Calculate the rate of earnings growth (the rate of assimilation) for the cohort of immigrants who were 25 years old in 1980. What do you(r) calculations now tell you about how rapidly immigrants are being assimilated? Why the difference between these results and those in Part a? What does the difference tell you about how the immigrant population is changing?