Labor Economics 5th Edition by George Borjas

Exercise 5

Suppose the United States enacts legislation granting all workers, including newly arrived immigrants, a minimum income floor of dollars. (Assume there is positive selection of migrants from the home country to the United States.)
a. Generalize the Roy model to show how this type of welfare program influences the incentive to migrate to the United States. Ignore any issues regarding how the welfare program is funded.
b. Does this welfare program change the selection of the immigrant flow In particular, are immigrants more likely to be negatively selected than in the absence of a welfare program
c. Which types of workers, the highly skilled or the less skilled, are most likely to be attracted by the welfare program