Tag: Miami

A Tale of Two Studies

Academics and professional economists have critiqued many well known academic papers on immigration in the last year. The first was by Alan de Brauw and Joseph R.D. Russell and it replicates and expands a famous 2003 paper by Harvard University economist George Borjas entitled “The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market.” 

Borjas famously found that from 1960-2000 there was a  wage elasticity of -0.38, meaning that a 10 percent increase in the size of the labor force due to immigration in a particular skill-cell lowered the average weekly wages in that cell by 3.8 percent relative to workers in other skill-cells.  Borjas’ paper is an impressive piece of scholarship and has been the lynchpin of arguments to close the border in order to protect wages.  Many economists disagree with Borjas

De Brauw and Russell had three findings.  Their first finding was that the wage elasticity dropped to -0.22 when they extended Borjas’ study to 2010. That is an important finding by itself – if the Borjas model was correct then why would the impact of immigrants on wages decrease as more of them entered the labor force between 2000 and 2010? 

Their second set of findings is that small changes in variable definitions turned some of Borjas’ ideas into statistically insignificant results. While not definitive, that suggests that the conclusions in his paper are not reliable.     

That leads to De Brauw and Russell’s third set of findings. They looked at the relationship between annualized male and female wages in the skill-cells when women entered the workforce in significant numbers. The correlation turned out to be positive­, which means men and women with the same skill level are complementary.  Thus, they argued that Borjas’ model is misspecified as it assumed immigrants and natives in the same skill-cells are more substitutable than they really are. If this finding is true, it would call into question the assumptions Borjas’ built in to his model, namely that immigration and natives are substitutable rather than complementary.

I’m still eagerly awaiting Borjas’ response to De Brauw and Russell’s paper. The critique of Borjas’ paper was serious because it replicated his work, extended it another decade, and found the results didn’t hold up. Many academics have already contested Borjas’ claims in numerous ways as I document here and here but this challenge cuts deep.

Police Shootings in Miami

Today’s New York Times reports that seven African-American men have been shot and killed by Miami police officers over an eight month period.  One officer, who has since been discharged for unrelated misconduct, was responsible for two of the shooting incidents over a span of just days. 

Each shooting should be scrutinized on its own merits.  The circumstances of each incident matters.  However, one question concerns the aggressive culture often found in police “tactical” units, which too often enagage in a reckless style of police work.  Since 2009, the Times reports, more than 100 officers have been added to Miami’s tactical units.  Another question is whether the Miami police department should be the agency investigating these cases.  An impartial investigation into these shootings needs to be conducted.

Go here for related Cato work.

The Tea Party, Real and Imagined

In the Washington Post, Dana Milbank rounds up a lot of bills introduced into state legislatures by conservatives, some of them a bit odd, and blames them all on “the Tea Party.” “Tea Party” has sort of replaced “neoconservative” as an all-purpose pejorative for liberals. Meanwhile, a tiny AP story down in the small type among the nail fungus ads reported some real Tea Party-style news. The Miami Herald covered it in more detail:

Voters swept Miami-Dade Mayor Carlos Alvarez out of office by a stunning margin Tuesday [88 percent], capping a dramatic collapse for a politician who was given increased authority by voters four years ago to clean up much-maligned county government but was ushered out in the largest recall of a local politician in U.S. history.

The spectacular fall from power comes after two years of missteps, ranging from granting top staffers big pay hikes to construction of a publicly funded stadium for the Florida Marlins to implementation of a property-tax rate increase that outraged an electorate struggling through an ugly recession….

Tuesday’s vote served notice that the public is thirsting for widespread reform at County Hall, long dominated by entrenched politicians and insiders. County Commissioner Natacha Seijas was similarly recalled Tuesday in a resounding defeat. For 18 years she represented a district that includes Miami Lakes and Hialeah and was widely regarded as the most powerful politician on the commission.

The two ousters come on the heels of Dorrin Rolle’s defeat in November, which marked the first time a sitting county commissioner has been defeated in 16 years.

More than 200,000 people cast votes in the election.

Miami is no right-wing hotbed. Obama got 58 percent of the vote there. This should worry tax-hikers everywhere.