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

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  • Giovanni Peri
  • Vasil Yasenov

Abstract

We apply the Synthetic Control Method to re-examine the labor market effects of the Mariel Boatlift, first studied by David Card (1990). This method improves on previous studies by choosing a control group of cities that best matches Miami’s labor market trends pre-Boatlift and providing more reliable inference. Using a sample of non-Cuban high-school dropouts we find no significant difference in the wages of workers in Miami relative to its control after 1980. We also show that by focusing on small sub-samples and matching the control group on a short pre-1979 series, as done in Borjas (2017), one can find large wage differences between Miami and control because of large measurement error.

Suggested Citation

  • Giovanni Peri & Vasil Yasenov, 2015. "The Labor Market Effects of a Refugee Wave: Applying the Synthetic Control Method to the Mariel Boatlift," NBER Working Papers 21801, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:21801
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    References listed on IDEAS

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    1. George J. Borjas, 2021. "The Wage Impact Of The Marielitos: A Reappraisal," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 12, pages 375-408, World Scientific Publishing Co. Pte. Ltd..
    2. David Card, 1990. "The Impact of the Mariel Boatlift on the Miami Labor Market," ILR Review, Cornell University, ILR School, vol. 43(2), pages 245-257, January.
    3. David Card, 2009. "Immigration and Inequality," American Economic Review, American Economic Association, vol. 99(2), pages 1-21, May.
    4. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
    5. Christian Dustmann & Tommaso Frattini & Ian P. Preston, 2013. "The Effect of Immigration along the Distribution of Wages," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(1), pages 145-173.
    6. Giovanni Peri, 2014. "Do immigrant workers depress the wages of native workers?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-42, May.
    7. Lewis, Ethan & Peri, Giovanni, 2015. "Immigration and the Economy of Cities and Regions," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 625-685, Elsevier.
    8. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
    9. Bodvarsson, Örn B. & Van den Berg, Hendrik F. & Lewer, Joshua J., 2008. "Measuring immigration's effects on labor demand: A reexamination of the Mariel Boatlift," Labour Economics, Elsevier, vol. 15(4), pages 560-574, August.
    10. 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.
    11. Angrist, Joshua D. & Krueger, Alan B., 1999. "Empirical strategies in labor economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 23, pages 1277-1366, Elsevier.
    12. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    13. Gilles Duranton & J. V. Henderson & William C. Strange (ed.), 2015. "Handbook of Regional and Urban Economics," Handbook of Regional and Urban Economics, Elsevier, edition 1, volume 5, number 5.
    14. Cahuc, Pierre & Carcillo, Stéphane & Zylberberg, André, 2014. "Labor Economics, second edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262027704, December.
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    More about this item

    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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