In the standard Roy model, migration can lead to an increase in average skills in both locations. What is necessary for this to happen?
A) The workers who migrate from the source country are below-average in skill relative to the average source country person but are above-average in skill relative to the average destination country person.
B) The workers who migrate from the source country are above-average in skill relative to the average source country person but are below-average in skill relative to the average destination country person.
C) The highest skilled workers migrate from the source country to the destination country.
D) The lowest skilled workers migrate from the source country to the destination country.
E) Migration leads to an increase in average skills in both locations whenever there is positive selection.

Question

Quizplus · Accepted Answer

For average skills to increase in both locations, migrants should be below-average in the source country but above-average in the destination country, leading to positive selection in both places.

In the Standard Roy Model, Migration Can Lead to an Increase