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Measuring immigration's effects on labor demand: A reexamination of the Mariel Boatlift

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  • Bodvarsson, Örn B.
  • Van den Berg, Hendrik F.
  • Lewer, Joshua J.

Abstract

Why do immigration shocks tend to have benign effects on native wages? One reason is that immigrants as consumers contribute to the demand for their services. We model an economy where workers spend their wages on a locally produced good, then test it via a reexamination of the 1980 "Mariel Boatlift" using Wacziarg's Channel Transmission methodology. Current Population Survey data on workers in 9 different retail labor markets and Survey of Buying Power data on retail spending by consumers in Miami and four comparison cities are used. We find strong evidence that the Mariel Boatlift augmented labor demand.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 15 (2008)
Issue (Month): 4 (August)
Pages: 560-574

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Handle: RePEc:eee:labeco:v:15:y:2008:i:4:p:560-574

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Web page: http://www.elsevier.com/locate/labeco

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Keywords: F22 J61 Immigration Consumption Wages Channels Retail;

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Cited by:
  1. Boeri, Tito & De Philippis, Marta & Patacchini, Eleonora & Pellizzari, Michele, 2012. "Moving to Segregation: Evidence from 8 Italian Cities," IZA Discussion Papers 6834, Institute for the Study of Labor (IZA).
  2. Francesca Mazzolari & David Neumark, 2009. "Immigration and Product Diversity," NBER Working Papers 14900, National Bureau of Economic Research, Inc.
  3. repec:dgr:uvatin:2007079 is not listed on IDEAS
  4. Susanne Prantl & Alexandra Spitz-Oener, 2013. "Interacting Product and Labor Market Regulation and the Impact of Immigration on Native Wages," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2013_22, Max Planck Institute for Research on Collective Goods.
  5. Adriana Kugler & Mutlu Yuksel, 2008. "Effects of Low-Skilled Immigration on U.S. Natives: Evidence from Hurricane Mitch," NBER Working Papers 14293, National Bureau of Economic Research, Inc.
  6. Tito Boeri & Marta De Philippis & Eleonora Patacchini & Michele Pellizzari, 2011. "Immigration, Housing Discrimination and Employment," Working Papers 390, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  7. Chletsos, Michael & Roupakias, Stelios, 2012. "The impact of immigration on the greek labor market," MPRA Paper 39872, University Library of Munich, Germany.
  8. Mazzolari, Francesca & Numark, David, 2009. "The Effects of Immigration on the Scale and Composition of Demand: A study of California establishments," MPRA Paper 19217, University Library of Munich, Germany.
  9. Chletsos, Michael & Roupakias, Stelios, 2012. "Immigration, Unemployment and Growth: Empirical Evidence from Greece," MPRA Paper 39861, University Library of Munich, Germany.
  10. König, Jan & Skupnik, Christoph, 2012. "Labor market integration of migrants: Hidden costs and benefits in two-tier welfare states," Discussion Papers 2012/5, Free University Berlin, School of Business & Economics.

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