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The Labor Market Effects of a Refugee Wave: Synthetic Control Method Meets the Mariel Boatlift

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  • Peri, Giovanni

    () (University of California, Davis)

  • Yasenov, Vasil

    () (Stanford University)

Abstract

We apply the Synthetic Control Method to re-examine the effects of the Mariel Boatlift, a large inflow of Cubans into Miami in 1980, first studied by David Card (1990). This method improves on previous studies by choosing a control group so as to best match Miami's labor market features before the Boatlift. We also provide reliable standard errors for the inference. Using data from the larger and more precise May-ORG Current Population Survey (CPS) one finds no significant departure of wages and employment of low-skilled workers between Miami and its control after 1979. The result is robust to several checks.

Suggested Citation

  • Peri, Giovanni & Yasenov, Vasil, 2017. "The Labor Market Effects of a Refugee Wave: Synthetic Control Method Meets the Mariel Boatlift," IZA Discussion Papers 10605, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp10605
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    References listed on IDEAS

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    Cited by:

    1. Bond, Timothy N. & Giuntella, Osea & Lonsky, Jakub, 2020. "Immigration and Work Schedules: Theory and Evidence," IZA Discussion Papers 13236, Institute of Labor Economics (IZA).
    2. Fallah, Belal & Krafft, Caroline & Wahba, Jackline, 2019. "The impact of refugees on employment and wages in Jordan," Journal of Development Economics, Elsevier, vol. 139(C), pages 203-216.
    3. Christopher F. Baum & Hans Lööf & Andreas Stephan & Klaus F. Zimmermann, 2018. "Occupational Sorting and Wage Gaps of Refugees," Boston College Working Papers in Economics 963, Boston College Department of Economics, revised 25 May 2020.
    4. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr, 2018. "The Effects of Immigration in Developed Countries: Insights from Recent Economic Research," CEPII Policy Brief 2018-22, CEPII research center.
    5. Edo, Anthony & Rapoport, Hillel, 2019. "Minimum wages and the labor market effects of immigration," Labour Economics, Elsevier, vol. 61(C).
    6. Dominik Sachs & Aleh Tsyvinski & Nicolas Werquin, 2016. "Nonlinear Tax Incidence and Optimal Taxation in General Equilibrium," NBER Working Papers 22646, National Bureau of Economic Research, Inc.
    7. Florian Gunsilius, 2020. "Distributional synthetic controls," Papers 2001.06118, arXiv.org, revised Mar 2020.
    8. repec:iab:iabdpa:201915 is not listed on IDEAS
    9. Deole, Sumit & Huang, Yue, 2020. "How do new immigration flows affect existing immigrants? Evidence from the refugee crisis in Germany," GLO Discussion Paper Series 579, Global Labor Organization (GLO).
    10. Peri, Giovanni & Rury, Derek & Wiltshire, Justin C., 2020. "The Economic Impact of Migrants from Hurricane Maria," IZA Discussion Papers 13049, Institute of Labor Economics (IZA).
    11. Ajzenman, Nicolas & Aksoy, Cevat Giray & Guriev, Sergei, 2020. "Exposure to Transit Migration, Public Attitudes and Entrepreneurship," IZA Discussion Papers 13130, Institute of Labor Economics (IZA).
    12. Jongkwan Lee & Giovanni Peri & Vasil Yasenov, 2017. "The Employment Effects of Mexican Repatriations: Evidence from the 1930's," NBER Working Papers 23885, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    immigration; wages; mariel boatlift; synthetic control method; measurement error;

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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