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

The Labor Market Effects of a Refugee Wave: Synthetic Control Method Meets the Mariel Boatlift <p>ABSTRACT:</p><p>We apply the synthetic control method to reexamine 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&apos;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 subsamples 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 the control because of large measurement error.</p> http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Human Resources University of Wisconsin Press

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

Journal of Human Resources , Volume 54 (2) – May 22, 2019

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Publisher
University of Wisconsin Press
Copyright
©by the Board of Regents of the University of Wisconsin System
ISSN
1548-8004

Abstract

<p>ABSTRACT:</p><p>We apply the synthetic control method to reexamine 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&apos;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 subsamples 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 the control because of large measurement error.</p>

Journal

Journal of Human ResourcesUniversity of Wisconsin Press

Published: May 22, 2019

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