City X has a large fraction of illegal immigrants; its native high school dropouts earn $17 an hour.City Y has a small fraction of illegal immigrants; its native high school dropouts earn $18 an hour.This suggests that illegal immigrants have a small effect on drop-out wages.Which of the following,if true and present,would suggest the true negative effect of illegal immigrants on dropout wages is much larger?

Question

Quizplus · Accepted Answer

If a large fraction of illegal immigrants in a city causes native high-school dropouts to move out of the city and move where there are fewer illegal immigrants, this would suggest that the negative effect of illegal immigrants on dropout wages is much larger. This is because it shows that native high school dropouts are willing to relocate to find better job opportunities if the presence of illegal immigrants is negatively impacting their wages.

City X Has a Large Fraction of Illegal Immigrants; Its