ECON 429 Study Guide - Midterm Guide: Ice 3, Oportunidades
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Ice2: then discuss how to interpret intercept and slope [ice3, draw dlnw using above data [ice4, explain that intercept and slope are called cohort and life cycle effects. Intercept of dlnw line can be interpreted as a cohort effect (initial quality difference between natives and migrants) and slope of the dlnw line as a life cycle effect (how well migrants do over time, compared to natives). Review chiswick"s interpretations of both c and lc effects: read intro and conclusions from chiswick 1978 [ice5] For=1)-e(lnw | for=0): explain how chiswick used 1970 census data to identify that line. Review chiswick"s interpretations of both c and lc effects. (10": ice4, ice5: evidence from borjas and katz 2005 figure 4. Main takeaway: need multiple cross sections to track same migrant cohort over time and look at their relative wages [borjas (1985). ] Borjas 1987: definition: positive, negative ss, predictions (positive and negative when similar average income.
