Lecture 6 Flashcards
‘Hainmueller and Hiscox, (2007)’
Show all high-skilled view all types of immigration more favourably.
‘Ottaviano and Peri, (2005)’
Show that immigrants and natives aren’t perfect substitutes through the example of different nationality chefs producing different cuisines.
‘Altonji and Card, (1991)’
Looked at effect immigration had on wages and employment for US natives during 1970-80. Used an IV estimated to remove the upward bias found a large drop in wages due to the influence of immigration (1% increase in immigration density lowers the wages by 1.2%)
‘Card, (1990)’
Used the natural experiment of the 1980 Cuban change too free emigration and saw the ‘Mariel Boatlift occur when 125k Cubans migrated to Miami causing Miami labour force to increase by 7% but found no negative effects on wages or unemployment of low-skilled natives, instead displaced other migrants from the labour force.
‘Angrist and Krueger, (1999)’
Replicated the ‘Card, (1990)’ study but for the potential 1994 Boat Lift but when no migration actually occurred. but still saw labour market effects even though no shock occurred which argues with ‘Card, (1990)’ methodology.
‘Borjas, (2003)’
Redefined the labour market as a national group who are part of the same skill cell. Looking at 32 skill cells in the US from 1960-2000 when labour supply of men increased by 11%. Very extreme results but found increased labour supply in a skill group by 10% will decrease wages in that skill level by 4% but effects varied in each skill level, 9% drop in those with high-school degrees and 4.9% drop for uni graduates. With the 2/3rd effect when using spatial correlation shows how useful the skill-cell approach is.
‘Giltz, (2012)’
Expoited the natural experiment of the fall of the Berlin Wall & millions of Ethnic Germans returned from Eastern Europe and Soviet Union (2.8m in 15 years) and if had no job to go into randomly allocated around the country was exogenous to labour market outcomes. Type of migrants into each region didn’t have much difference but change to skill composition varied in each region. When 10 ethnic Germans got a job 3.2 natives lost theirs, but no effect on wages due to the strong union structure of Germany.
‘Carrasco et al., (2008)’
Looking at the labour market effects of immigration into Spain on wages and employment rates for natives. Spain had no immigration before 1990’s but afterwards all increases in population occurred was due to immigration rates. During 1993-9 foreign workers increased by 70% and total population increased by 8% from 1991-2005. Using 64 skill cells found no overall effects on wages and unemployments rates of existing workers in the Spain from immigrants. Even at the most severe the immigration caused a drop of 0.8% employment rate but not big when rate of 62% employment seen for 1993 so no real effect seen.
