CGD in the News

A hugely influential paper found immigration lowers locals’ wages. But a new study says it made a big mistake (The New York Times)

May 26, 2017

From the article:

When immigrants arrive, what happens to locals’ wages?

One of the core arguments of most immigration opponents is that competition from immigrants makes the people who are already in a country worse off.

That seems to make intuitive sense. Basic supply and demand: If there are more workers, wages should fall.

A recent study by the Harvard economist George Borjas found that was true. He took advantage of a natural experiment — the Mariel boatlift, which brought thousands of Cubans to Miami...

But a new paper says his conclusion was wrong: the result of a data error, not real wage effects.

Jennifer Hunt, an economics professor at Rutgers University, and Michael Clemens, an economist at the Center for Global Development, a Washington think tank, argue that Mr. Borjas’s results can be explained by a glitch in the data he used.

Read full article here.