Question

In: Economics

Why is it important for Card's analysis that the Castro's decision to allow Cubans to go...

Why is it important for Card's analysis that the Castro's decision to allow Cubans to go freely to the United States was largely unexpected?

Briefly explain how David Card used the Mariel Boatlift to study the effect of immigration on native wages. What was his main finding

Solutions

Expert Solution

David Card, An Economist at UC Berkeley explained the effect of immigration on native wages in his research paper “The Impact of the Mariel Boatlift on the Miami Labor Market,” published in 1990.During April,1980 to October,1980 a mass emigration of Cubans fro Cuba's Mariel Harbor to the United States have taken
place .This increased the Labour Supply by 7 percent. David Card have taken the data of this emigration from US Censes Bureau's Current Population Survey. Wages of individuals in the Miami metropolitan area for each year was calculated .According to their race and demographics . He then compared Miami's wages and employment levels with four metropolitan areas :Atlanta ,Los Angels,Houston,and Tampa. the results of White,Black, and non Cuban Hispanics shown that wages and employment of Miami and other cities are similar during the eimmigrationn period. This clearly says that Mariel Boatlift did not negatively impact whites,blacks,or non-cuban Hispanics in Miami.David Card Study concludes that immigration did not affect the wages and employment in Miami . Immigrants are low skilled labour and this did not affect the overall labour market . Castro's decision to allow cubans go freely to US have given the opportunity to study about the effects of immigration in labour market .


Related Solutions

THIS IS A DECISION ANALYSIS MAKING CLASS (HEALTHCARE ADMINISTRATION) Discuss why probability is so important within...
THIS IS A DECISION ANALYSIS MAKING CLASS (HEALTHCARE ADMINISTRATION) Discuss why probability is so important within the health care decision analysis. Provide specific areas of understanding, for Classical, Empirical, Subjective and Axiomatic Probability. Why are these Probability used in the health care decision analysis?
Q.4. a) Examine why the economic analysis is important for any investment decision? b) Mr. Ahmad’s...
Q.4. a) Examine why the economic analysis is important for any investment decision? b) Mr. Ahmad’s bond portfolio manager advises him to buy a 7 year, OMR 5000 face value bond that gives 7 percent annual coupon payments. The appropriate discount rate is 8%.The bond is currently selling at OMR.4700. Should Ahmad adhere to the manager’s advice?
What is cost-benefit analysis? How would you apply cost-benefit analysis to your decision to go to...
What is cost-benefit analysis? How would you apply cost-benefit analysis to your decision to go to college? What are the benefits and what are the costs of going to college? b. What happens to your analysis if the interest rate rises? What happens if the payoff period shrinks? Who is more likely to find college economically worthwhile: you for your 63-year-old professor? c. How would you apply cost-benefit analysis to environmental policy? What are the costs of pollution? What are...
why is decision making important in firms? - organizational psychology
why is decision making important in firms? - organizational psychology
Financial analysis of a business is an important part tool in the decision making process by...
Financial analysis of a business is an important part tool in the decision making process by the management of a company. Identify and discuss the types of decisions that management may develop from financial analysis.
Explain the decision to go private.
Explain the decision to go private.
Why is it important to understand and apply financing options for a decision-maker?
Why is it important to understand and apply financing options for a decision-maker?
Why are taxes and the tax code important for managerial decision making?
Why are taxes and the tax code important for managerial decision making?
What is sensitivity analysis? Why is it important for managers?
What is sensitivity analysis? Why is it important for managers?
Why is it important for companies to go beyond financial and accounting data in accessing their...
Why is it important for companies to go beyond financial and accounting data in accessing their performance?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT