Ideas to Action:

Independent research for global prosperity

CGD Policy Blogs

 

Labor Mobility and Wages of the Rich Country Poor, Part One: Analysis and Implications of the Mariel Boatlift

George Borjas has a 2015 paper on the Mariel boatlift experience arguing that, although the large and rapid influx of migrants did not affect average wages or low-skill wages, a small, demographically arbitrary, group experienced large negative wage impacts. In this blog post I want to address two technical points about this finding and then address more conceptual points about the policy implications of this general type of finding of distributional impacts in Part Two.