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

Listed author(s):
  • Peri, Giovanni

    ()

    (University of California, Davis)

  • Yasenov, Vasil

    ()

    (University of California, Davis)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 10605.

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Date of creation: Mar 2017
Handle: RePEc:iza:izadps:dp10605
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  1. Joshua D. Angrist & Jörn-Steffen Pischke, 2010. "The Credibility Revolution in Empirical Economics: How Better Research Design Is Taking the Con out of Econometrics," Journal of Economic Perspectives, American Economic Association, vol. 24(2), pages 3-30, Spring.
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  14. Bollinger, Christopher R, 1998. "Measurement Error in the Current Population Survey: A Nonparametric Look," Journal of Labor Economics, University of Chicago Press, vol. 16(3), pages 576-594, July.
  15. Joan Monras, 2015. "Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis," Sciences Po Economics Discussion Papers 2015-04, Sciences Po Departement of Economics.
  16. George E. Johnson, 1997. "Changes in Earnings Inequality: The Role of Demand Shifts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 41-54, Spring.
  17. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
  18. Cahuc, Pierre & Carcillo, Stéphane & Zylberberg, André, 2014. "Labor Economics, second edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262027704.
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