Consider the case of extremity selection, where both the most skilled and the least skilled from a source country choose to migrate.
a. In the Roy Model, what must the graph of the return to skill on the two countries look like to generate this scenario? Draw an example.
b. How can we explain this type of selection? Give two different explanations.
c. Looking at immigrants from Mexico to the US, Chiquiar and Hanson find evidence for the opposite kind of selection- intermediate selection, where only workers from the middle of the skill distribution migrate. How do they explain this finding in the context of the Roy Model?