The Economics of Immigration 2nd Edition by Cynthia Bansak

Exercise 3

A couple is considering moving to Tokyo from New York. Ashley's cost of moving is $60,000, and Casey's cost of moving is $90,000. Their moving costs are high since they must learn a new language. The present value of Ashley's lifetime earnings in New York is $500,000 in New York, and $550,000 in Tokyo (after converting earnings from yen into dollars). The present value of Casey's lifetime earnings in New York is $200,000 in New York, and $1,000,000 in Tokyo. Will they move as a couple? Is one of them a tied mover or a tied stayer?