Digest

The episode delves into the Mariel Boat Lift, a significant event in 1980 where 125,000 Cuban immigrants arrived in Florida, providing economists with a natural experiment to study the impact of immigration on the labor market. The episode highlights the contrasting views of two prominent economists, David Card and George Borjas, who have been at the forefront of this debate for decades. Card's initial research, focusing on the Mariel Boat Lift, suggested that immigration had little to no negative impact on wages and employment in Miami. However, Borjas, who initially disagreed with Card's findings, later conducted his own analysis of the Mariel data, focusing on low-skilled workers, and concluded that immigration did have a negative impact on wages for this group. The episode explores the controversy surrounding Borjas' findings, with other economists raising concerns about his methodology and the narrowness of his sample. The episode concludes by highlighting the consensus reached by a group of leading experts, including Borjas, who ultimately agreed that the long-term impact of immigration on wages and employment for native-born workers is very small. Despite this consensus, the debate continues, with some economists continuing to challenge the findings and the political discourse on immigration remaining heavily influenced by the issue.

Outlines

00:00:00

Introduction

This Chapter introduces the topic of immigration and its impact on the labor market, highlighting the ongoing debate among economists and politicians. It sets the stage for the episode's focus on the Mariel Boat Lift as a natural experiment to study this issue.

00:04:02

The Mariel Boat Lift: A Natural Experiment

This Chapter delves into the historical context of the Mariel Boat Lift, explaining how it came about and the influx of Cuban immigrants into Florida. It introduces David Card, a Nobel Prize-winning economist, who saw this event as an opportunity to study the effects of immigration on the labor market.

00:16:46

The Controversy and its Impact

This Chapter explores the controversy surrounding George Borjas' research on the Mariel Boat Lift, which challenged David Card's findings and suggested a negative impact of immigration on wages for low-skilled workers. It discusses the media attention and political implications of Borjas' work, as well as the critiques raised by other economists.

00:23:37

Towards Consensus

This Chapter describes the efforts of the National Academy of Sciences to bring together leading experts in immigration economics to reach a consensus on the issue. It highlights the challenges and eventual agreement reached, which largely supported Card's initial findings that immigration has a minimal impact on wages and employment for native-born workers.

Keywords

Q&A

• What was the Mariel Boat Lift and why was it significant for studying immigration?

  The Mariel Boat Lift was a mass exodus of Cubans from Cuba to the United States in 1980. It provided economists with a unique natural experiment to study the impact of immigration on the labor market, as a large number of immigrants arrived in Florida within a short period.

• What were the contrasting views of David Card and George Borjas on the impact of immigration?

  David Card's research on the Mariel Boat Lift suggested that immigration had little to no negative impact on wages and employment in Miami. George Borjas, however, argued that immigration can have negative effects on wages, particularly for low-skilled workers, and his research on the Mariel Boat Lift challenged Card's findings.

• What were the main critiques of Borjas' research on the Mariel Boat Lift?

  Other economists criticized Borjas' methodology, arguing that his narrow focus on a specific subset of workers and his exclusion of Hispanic workers from his sample made his findings less reliable and potentially misleading.

• What consensus did the National Academy of Sciences reach regarding the impact of immigration on wages and employment?

  The consensus reached by a group of leading experts, including Borjas, was that the long-term impact of immigration on wages and employment for native-born workers is very small.

• Despite the consensus, why does the debate about immigration continue?

  The debate about immigration continues because some economists continue to challenge the findings, and the political discourse on immigration remains heavily influenced by the issue, with politicians often using economic arguments to justify their positions.

Show Notes