I'm also going to quibble a bit with how they constructed this Instrumental Variable. The way it's constructed, the higher the turnover (for lack of a better term) from native to foreign, the better the predictor it is (because in their theory, it's exogenous to wages at the local level). Does anyone really believe this? Immigrants respond to incentives just like anyone else. They're not choosing to immigrate to Sac City, Iowa, or any other low-COL/low-wage town, for a reason. It also doesn't answer my original question, which was central to my initial claim: why? The "why" is going to answer a lot of other layered questions about hostility to ever-increasing immigration. Are firms moving in that exploit low-wage immigrants, generating other adjacent economic activity? Probably! Not controlled for or referenced at all in this, and this paper is by no means a definitive conclusion that high low-skill immigration is good (even on a two decade timeline, which even typing that is just absurd).
I'm also going to flip it around for a second. As I said with the Mariel boatlift study, where a 7% increase in the labor force yielded more or less no impacts on hyperlocal labor force, even considering (possible? I know little havana right now is mostly spanish but idk what it was back then) language and skills barriers. How do you explain that? That is the most short term of local supply shocks with basically no short term employment or wage impact. Thirty-five years of re-checks (Card 1990 → Borjas 2015 → Clemens-Hunt 2019 → Peri-Yasenov 2019 → Lewis et al.) still show more or less zero effect on native wages or jobs (once you fix compositional glitches in Borjas’s sample). If a shock that extreme can’t push wages down, the `more workers = lower pay` story is busted.
I'm not familiar with zoning laws in the UK to comment, so, sure. Maybe a byzantine zoning bureaucracy is the problem there, that does ring distinctly "British" to me.
I haven't read the Mariel study, and honestly I don't really have any interest in it because the underlying story is that Cubans just replicated their own economic structures in a hyper-contained locality, with significant ethnic solidarity given a shared history of hardship. Again, there's qualitative aspects to this that economists - especially the econometricaly inclined - struggle with.
name them!
> Haven't read the Mariel study
then stop making short-run supply shock claims
> Cubans just replicated their own economic structures in a hyper-contained locality, with significant ethnic solidarity given a shared history of hardship
Damn if only there was a way to study assimilation. Wait, there is, we have, and if you look a few replies up you'll see that its basically a complete success with sufficient NGO support that vastly boosts social participation.
> If the benefits were so obvious we wouldn't need a team of nerds to tell us that, well, actually your hourly wages do go up ... eventually.
This kind of thinking leads to Trump. Unironically. Handwaving about "if it were real I'd know of it" is what leads to terrible economic policy.
I’ll keep making whatever claims I want, and you can keep gatekeeping (or attempting to) as much as you like (now I really won’t read the Mariel study, nevermind that you are conditioning success on Uncle Sam handing over money to make it work). The force with which state something as plainly obvious only appears as such inside the spreadsheets, so enjoy them.
spite driven willful ignorance is something that I didn't expect to find when starting this conversation.
I'm mostly looking for you to retract your claim about how short-run supply shocks must obviously show up in wages and employment.
EDIT: also nowhere does it require fiscal outlays for assimilation, the single biggest thing is expedited provision of work permits, which is obviously fiscally positive.
No.
Are you referring to:
> …basically a complete success with sufficient NGO support that vastly boosts social participation. …
? …because NGO is Non-Government Organisation. I may have missed the bit you're actually thinking of.
More seriously...
- for US: The newest NBER IV estimates put the wage effect of all 2000-19 US immigration at +2 % for non-college natives. Show me a UK study of similar vintage that finds anything near –2 %.
- for UK: UK real wages tracked productivity one-for-one after 2008; BoE and NIESR pin that on capital deepening, Brexit and austerity. Not on immigration, which the MAC finds moved wages by _at most_ –1% (aggregate, not yearly!) and the final report was ~0.1%, basically a null finding.
- We've already been through lump of labor, so I don't know why you've been banging on equilibrium.
And to finally address your time horizons: Short-run? Mariel-style shocks still show null effects. Medium-run? 2009-20 UK data flips positive. Long-run? Productivity wins. Pick your horizon. Immigration is at worst a rounding error next to TFP, which is positively associated with migration.
Happy to dive deeper, but at this point the burden of proof is on anyone claiming large negative wage effects. The best evidence, across multiple methods and countries, just isn’t there.