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Labor supplies and wages for higher nests are calculated as implied by the nested-CES structure (see Appendix 2).
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Put differently, the constraints imposed by factor demand theory and by the functional form of the nested CES framework greatly restrain the structure of immigration wage effects that can possibly be estimated by any data.
As an example of the extreme restrictions that the nested CES framework imposes on the number of "permissible" cross-effects, consider the empirical analysis in the Borjas (2003) study.
These models typically expand the nested CES framework by adding yet another level that aggregates the contribution of immigrants and natives in skill group i: L i = ρ N N i γ + ρ F F i γ 1 / γ, (45).
In the homogeneous labor context, the supply shift is measured by the percent increase in the size of the workforce, while in the nested CES framework it is measured by the percent increase in the efficiency units-adjusted size of the workforce.
The nested CES framework is relatively tractable and has become popular in the immigration literature27.
27Bowles (1970) introduced the nested CES framework into the labor demand literature.
In the nested CES framework, the value of the elasticity σ NF does not have any other implications.
The nested CES framework assumes that all of these cross-effects can be described in terms of three elasticities of substitution.
The well-resolved phylogeny, combined with field observations on flower shape and color, allows us to test whether petal fringes in Old World Sicyoeae evolved just once as would be the case if Gymnopetalum and Hodgsonia were nested inside it [ 20] or multiple times as would be implied by these genera having separate evolutionary histories.
Take the network implied by book-translation.
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