Do Immigrants Decrease Economic Freedom?

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In my BYU Studies Quarterly article last year, I wrote,

Another objection [to increased immigration] is what is known as the “epidemiological case,” which argues that immigrants may bring with them foreign values that undermine the culture and institutions of the host country. In essence, immigrants transmit to rich countries those elements that make their source countries poor. What makes this rather prejudiced argument all the more jarring is the fact that it has virtually no supporting evidence. Unfortunately, very little empirical research has been conducted exploring the impact of immigrants on cultural, political, and economic institutions at all. However, the research that is available should calm fears and actually provide reasons for optimism. For example, there is no association between growth of total-factor productivity (TFP) in rich countries and the ratio of migrants from low-income countries, indicating that migrants do not “contaminate” their new homes with the low productivity of their source countries.

The Canada-based Fraser Institute publishes its oft-cited Economic Freedom of the World report annually. Its indicator—known as the Economic Freedom of the World (EFW) Index—defines economic freedom based on five major areas: (1) size of the government, (2) legal system and the security of property rights, (3) stability of the currency, (4) freedom to trade internationally, and (5) regulation of labor, credit, and business. According to the institute’s most recent report (which looks at data from 2015), countries with more economic freedom had considerably higher per-capita incomes and economic growth. Relying on this index, a 2015 study found that a larger immigration population marginally increases the economic freedom of the host country’s institutions. No negative impacts on economic freedom were found. Several authors from this study looked at Israel during the 1990s as a natural experiment in mass migration. During the 1990s, Israel’s population grew by 20 percent due to immigrants from the former Soviet Union. Yet, instead of experiencing decline, Israel shot up “from 15% below the global average [in economic freedom] to 12% above it and improv[ed] its ranking among countries by 47 places.” Similarly, a 2017 study found that higher diversity—measured by levels of ethnolinguistic and cultural fractionalization—predicts higher levels of economic freedom. While this particular study mainly discusses development economics, the correlation between high diversity and high economic freedom is an important aspect of the immigration debate. Barring members of different ethnolinguistic groups from entering the country may actually be holding back economic development (pg. 95-97).

Research on Jordan provides further evidence for the position above. Another 2018 study piles on. Overall, the authors’ 

results don’t show any strong relationship between increases in immigration and less economic freedom, nor do they show any strong relationship between an increase in the share of naturalized US citizens and less economic freedom. Therefore, our results indicate that, so far, Borjas’s concerns about a deterioration in the quality of institutions following an increase in immigration are not supported by the empirical results as they apply to the US states (pg. 394).

There were mixed results when it came to minimum wage legislation and union density. In the cases where the effects are slightly negative, the authors explain,

In states with larger immigrant population shares, are the increases in minimum wages and union densities the result of immigrants pushing for higher minimum wages and joining unions at higher rates than native-born individuals (because immigrants’ wages tend to be lower than natives’ wages)? Or are they the result of native-born individuals unionizing and pushing for higher minimum wages as a way of pricing out and restricting immigrant labor market supply? It could be explained either way and both explanations probably operate. However, our results don’t necessarily indicate whether the negative impact on labor market freedom is coming more from immigrants or more from native-born citizens. Therefore, when we study the relationship between immigration and economic freedom, the results don’t tell us much about the direct impact immigrants may have (pg. 376).

If you think the only way to “Make America Great Again” is by keeping out foreigners in the name of protecting our institutions, you need to chillax. 

Radical Ideology as Stupidity Enabler

I just finished reading A River in Darkness, the autobiography of a Korean-Japanese man who escaped from North Korea. It’s a tragic and engrossing read, but one detail that stuck out was the way that North Korean bureaucrats forced North Korean farmers to grow rice in ways that even a kid from urban Japan who had never studied agriculture knew were incorrect. (Basically, they planted the rice much too close together.)

It reminded me of another book, The Three-Body Problem, which depicted some of the real-life events of the Cultural Revolution in China, in particular “struggle sessions” in which Chinese professors were publicly humiliated and tortured by a mob in part for refusing to recant scientific principles that had been deemed incompatible with political doctrine.

Panchen Lama during the struggle session in 1964 (Wikipedia)

The communists in North Korea and China were in good company. Matt Ridley, in The Origins of Virtue, recounts the Soviet Union’s own peculiar war on science:

Trofim Lysenko argued, and those who gainsaid him were shot, that wheat could be made more frost-hardy not by selection but by experience. Millions died hungry to prove him wrong. The inheritance of acquired characteristics remained in official doctrine of Soviet biology until 1964.

So in North Korea they insisted on disregarding ancient agricultural knowledge because the Party knew best, up to and including triggering massive starvation. In China they executed, exiled, and fired an entire generation of trained scientists because the Party knew best. And in the Soviet Union they insisted on trying to create frost-resistant wheat by freezing the seeds first and created even more massive starvation. Genetics, quantum mechanics, and common sense: why did the Party think they knew so much?

Let me tell you what got me thinking about this. A friend of mine posted a link to this article from Duke University’s The Chronicle detailing that a graduate program director who urged foreign students studying at Duke to speak English has been forced to step down as a result of her advice. Now, I don’t have enough information about the outrage du jour to have a strong opinion about it. As a matter of basic ethics and common sense, it’s rude and counterproductive to go to a foreign country to study and work and then hang around other people speaking your own language instead of adopting the language of the country you’ve moved to. Of course there are exceptions and I don’t generally think it’s a good idea to enforce every aspect of etiquette and common sense with formal policies, but that’s not really the point. I don’t want to take a strong position on the Duke case because I don’t know or care that much about it.

On the other hand, my friend who posted the article knew everything there is to know about it. I will not quote from the post (it was not shared publicly), but she interpreted everything through the standard lens or racism / colonialism / privilege / etc. and as a result she had zero doubts about anything. She spoke with absolute confidence and black-and-white judgment. Then all of her like-minded friends piled on, congratulating her. She knew and they knew that there was one and only explanation, one and only one answer, and that it was obvious.

I tried to engage in some discussion, leading with a simple question: have you ever lived in a foreign country and did you insist on speaking your language there? Do you even speak a foreign language? She hasn’t, so she couldn’t, and she doesn’t. (I have, I could but I did not, and I do.) Instead of considering that her view might be wrong, however, she just called for another friend to come in because they were a specialist in linguistic imperialism. So, as far as I know, this friend also has zero relevant experience but has a bigger ideological toolbox to whack people over the head with. Other commenters–even when they were polite–were just as clueless, sharing stories about growing up in bilingual homes or teaching English as a second language at the elementary school level. What do either of these things–interesting as they may be in themselves–have to do with speaking English in a graduate program? Not a single thing.

There are two things going on.

First, radical ideologies are incredibly dangerous things because they enable stupidity on a massive scale. People embrace radical ideologies because they are powerful explanation-machines. Life confronts all of us with ambiguity, complexity, and uncertainty. Also, disappointment and difficulty. Radical ideologies are a perfect antidote to the ambiguity, complexity, and uncertainty. They are, functionally speaking, fulfilling the same role that conspiracy theories do. They don’t improve your life, they aren’t meaningfully accurate, but they make your life explicable. They turn all of the randomness into order. This doesn’t actually make your situation objectively better, but it makes it feel better.

This can be relatively harmless. Radical ideology, conspiracy theories, and superstition have harmless manifestations where they don’t really do anything except waste time in exchange for a false feeling of control. Sure, you might be throwing away money to get your palm read, but it’s not really hurting anyone, right?

Sure, but things get dicier when your kooky explanation-machine happens to target, say, vaccines. Or all of modern psychiatry. Or, heck, modern medicine from start to finish. Even in these cases, the damage is limited to mostly yourself and, in particularly tragic cases, maybe your kids.

But when the explanation-machine that you’ve adopted is a political ideology, we go through a kind of phase-change and things get much, much worse.

Unlike micro explanation machines–superstition and conspiracy theories, for example–political ideologies are macro explanation machines. They have two functions. The first is the same as micro explanation machines: to quickly and easily make your life experiences intelligible. But they don’t stop there. They have a second function, and that function is to accumulate power. And that’s where things go off the rails and we get industrial-scale stupidity enabling.

To illustrate this, we have to understand why it was that Marxists in North Korea planted rice too close together, or Marxists in China executed physicists, or Marxists in the USSR kept using psuedo-science to try and grow frost-resistant wheat. You see, it wasn’t just some kind of weird accident that happened to be harmful, in the way that some people cling to harmless conspiracy theories like Bigfoot and others cling to harmful ones like the anti-vax crowd. Nope, the Marxists in North Korea, China, and the USSR were following a script laid down intentionally and inevitably by Lenin and Stalin.

Here’s philosopher Steven L. Goldman’s recounting:

This imperialism of the scientific world view—that there is such an imperialism—has a kind of, let’s call it, acute support that one doesn’t ordinarily encounter from an odd quarter, and that is from V.I. Lenin and Joseph Stalin. Before he was preoccupied with becoming the head of the government of the Union of Soviet Socialist Republics, Lenin wrote a book called Materialism and Imperio-Criticism in which he harshly criticized Ernst Mach’s philosophy of science, and other philosophies of science influenced by Mach, that denied that the object of scientific knowledge was reality—that denied that scientific knowledge was knowledge of what is real and what is true.

Lenin strongly defended a traditional—not a revolutionary—but a traditional conception of scientific knowledge, because otherwise Marxism itself becomes merely convention. In order to protect the truth of Marxist philosophy of history and of society—in order to protect to the idea that Marxist scientific materialism is “True” with a capital “T,” Lenin attacked these phenomenalistic theories, these conventionalistic theories—that we have seen defended by not just Mach, but also by Pierre Duhem, Heinrich Hertz, Henri Poincare, at about the same time that Lenin was writing Materialism and Imperio-Criticism.

Stalin in the 1930s made it clear that the theory of relativity and quantum theory, with its probability distributions as descriptions of nature—”merely” probabilistic descriptions of nature—”merely” I always say in quotation marks—that these were unacceptable in a Communist environment. Again, this is for the same reasons, because Marxist scientific materialism must be true. So, scientific theories that settle for probabilities and that are relative, are misunderstanding that special and general theories of relativity are in fact absolute and deterministic theories.


The willful stupidity of Marxist-Leninist ideology is not an accidental byproduct. It is a direct consequence of the fact that radical political ideologies are not content to be one explanation-machine among many but–as organized political movements in a battle for power–have to fight to be the explanation machine. This leads directly towards conflict between Marxist-Leninist ideology and any other contender, including both science and religion.

When these macro explanation machines aren’t killing millions of people, the absurdity can be hilarious. Here’s Goldman again:

A curious thing happened, namely that Russian physicists of the 1930s, 1940s and even into the 1950s, in books that they published on relativity and quantum theory, had to have a preface in which they made it clear that this book was not about reality—that these theories were not true, but they were very interesting and useful. It was okay to explore, but of course they’re not true because if they were, they would contradict Marxist scientific materialism.

This is quite funny because back in the 16th century, when Copernicus’ On the Revolution of the Heavenly Spheres was published in 1543, it was accompanied—unbeknownst to Copernicus, who was dying at the time—that the man who saw it through publication was a Protestant named Andreas Osiander—who stuck in a preface in order to protect Copernicus, because he knew that the Church would be upset if this theory of the heavens were taken literally. We know Galileo was in trouble for that. We talked a lot about that. So Osiander stuck in a preface saying, “You know, I don’t mean that the Earth really moves, but if you assume that it does, then look how nice and less complicated astronomy is.”

Now, I’m a religious person. I don’t think there’s any unavoidable conflict between religion and science. But when religion becomes a political ideology–as it was in the days of Copernicus and Galileo–then it is functionally equivalent to any other macro explanation machine (like Marxist-Leninism) and you will get the same absurd results (and, more often than not, the same horrific death tolls).

So here’s what I’ve learned. Human evil is never dangerous when it’s obvious. All of the great evils that we recognize today–fascism, slavery, Marxist-Leninism–were attractive in their day. And not to cackling, sinister villains rubbing their hands together with glee at the thought of inflicting evil misery on the world. Ordinary people thought that each of these monstrous evils was reasonable and, in many cases, even preferable.

If you roll that logic forward, it implies that the greatest evils of our time will be non-obvious. The movement that in 40 or 50 years from now we will revile and disavow is a movement that seems respectable and even attractive to many decent and intelligent people today. It is a macro explanation engine that appeals to people individually because it brings order to their personal narratives and–because it is functioning in the political realm–it is a macro explanation engine that will seek to crowd out all competitors and will therefore be hostile not only to alternative political ideologies but also to micro explanation engines that function in totally disparate realms like religion in science.

And, precisely because it seeks to undermine all other explanation engines even when operating in domains where it has zero utility or applicability, it will be most easily recognized in one way: as a massive enabler of stupidity.

Because that’s what happens when you have a mighty hammer. You start to see nothing but nails.

A Tale of Two WaPo articles

In the first article, Nathan Phillips was getting ready to leave and trying to remove himself from what seemed like an escalating situation, but the teens swarmed around him and wouldn’t allow him to retreat.

‘It was getting ugly’: Native American drummer speaks on his encounter with MAGA-hat-wearing teens

Phillips, 64, said he felt threatened by the teens and that they swarmed around him as he and other activists were wrapping up the march and preparing to leave.

Phillips, who was singing the American Indian Movement song that serves as a ceremony to send the spirits home, said he noticed tensions beginning to escalate when the teens and other apparent participants from the nearby March for Life rally began taunting the dispersing indigenous crowd.

A few people in the March for Life crowd began to chant, “Build that wall, build that wall,” he said.

“It was getting ugly, and I was thinking: ‘I’ve got to find myself an exit out of this situation and finish my song at the Lincoln Memorial,’ ” Phillips recalled. “I started going that way, and that guy in the hat stood in my way, and we were at an impasse. He just blocked my way and wouldn’t allow me to retreat.”

In the second article, Phillips was concerned about escalating tensions between the teens and the black Hebrew Israelites, so he decided to walk into the mass of teens while playing his drum and singing a song. The teenage boy he stood face-to-face with (now identified as Nick Sandmann) was not refusing to let him pass, but Phillips didn’t see why he should walk around Sandmann because he was thinking of what white people have done in this country over the last several centuries.

A tribal elder and a high school junior stood face to face, and the world reacted

Phillips played a prayer song on a drum as he walked toward the students.

Some of the students began doing a “Tomahawk chop” and dancing, the video shows. Phillips said he found it offensive, but kept walking and drumming.

Most of the students moved out of his way, the video shows. But Sandmann stayed still.

Asked why he felt the need to walk into the group of students, Phillips said he was trying to reach the top of the memorial, where friends were standing. But Phillips also said he saw more than a teenage boy in front of him. He saw a long history of white oppression of Native Americans.

“Why should I go around him?” he asked. “I’m just thinking of 500 years of genocide in this country, what your people have done. You don’t even see me as a human being.”

The lengthy videos show Phillips walked into the crowd and up to Sandmann, who never approached or moved to block Phillips, said anything to Phillips, or stopped him from going anywhere. And despite Phillips describing the teens as “beasts” going after their “prey” (the black Hebrew Israelites), the 1h46m video shows the BHIs making many racist, homophobic, and aggressive comments toward the teens and others, yet the video doesn’t appear to capture any instance of the teens chanting “build a wall” or other racist phrases. Note the second Washington Post article describes the BHIs’ terrible behavior “according to the video” and the teens terrible behavior “according to [BHI] Banyamyan and another Hebrew Israelite.”

But by far the best (most ironic) part of WaPo’s coverage is this paragraph:

The incident, and the finger-pointing that followed, seemed to capture the worst of America at a moment of extreme political polarization, as discourse once again gave way to division, and people drew conclusions on social media before all the facts were known.

You mean people drew conclusions based on media accounts published before all the facts were known? Could WaPo be less self-aware?

The first round of mainstream coverage (NYT, WaPo, HuffPo, etc.) all involved interviews or at least quotes and videos with Phillips but no discussion with any of the teens involved (and no mention of the BHIs at all). It took non-journalists no time to find and review the much longer videos for full context. Now the same outlets that uncritically published headlines such as “Native American man harassed by teens speaks out” are saying “A new video shows a different side of the encounter between a Native American elder and teens in MAGA hats.” All within about a day.

Pew Research recently released a new poll finding that Republicans in particular say the news media doesn’t understand people like them. I’d say that’s a generous interpretation.

Related links:

The Media Wildly Mischaracterized That Video of Covington Catholic Students Confronting a Native American Veteran – Reason, January 20, 2019

Statement of Nick Sandmann, Covington Catholic High School junior, regarding incident at the Lincoln Memorial – CNN, January 20, 2019

Gillette, Culture, and Class

I didn’t really want to write about the infamous Gilette #MeToo advertisement, because I didn’t really care about it. I still don’t, personally. But then a Glenn Reynolds piece at USA Today showed me the controversy in a new light.

In his article, Reynolds made the observation that:

… in America class warfare is usually disguised as cultural warfare. But underneath the surface, talk is a battle between the New Class and what used to be the middle class.

This is definitely something that I’ve noticed. It was one of the things I learned when I did the research for the most frequently-read post here at Difficult Run: When Social Justice Isn’t about Justice. And it totally fits with the fallout I’ve seen on my Facebook feed. Pretty much every single person I’ve seen angry or opposed to the ad comes from a blue collar and/or rural background. Why are they mad? Not because they object with the message of the ad per se (who objects to “hey, stop bullying”?) but because they know they are being talked down to, patronized, and scolded. And they’re right.

And all the folks I’ve seen making fun of them and mocking anyone who has a problem with the ad? College educated, often with a graduate degree, and frequently working as a professional intellectuals. They see it as a culture war issue instead of class war issue because that’s one of the most important functions of social justice activism: to cloak class interest in progressive ideals.

Also, the silliness of anti-capitalists celebrating ad campaigns, no matter how superficially idealistic, is pretty amusing.

But, while we’re admiring the nimble messaging of capitalism, here’s a message that might actually contribute to men being good men.

Have the Minimum Wage Hikes in South Korea Helped the Economy?

From The New York Times:

Under President Moon Jae-in, South Korea has raised taxes and the minimum wage in the name of economic growth. So far, it hasn’t worked out as planned.

Growth has slowed, unemployment has risen and small-business owners like Moon Seung are complaining. Mr. Moon, founder of an auto parts maker called Dasung in Incheon, an industrial town near Seoul, says his labor costs were up an extra 3 percent last year after the minimum wage rose to 7,530 Korean won, or about $6.70, an hour. That may not sound like much, but it ate into his razor-thin profit margin and prompted him to stop hiring.

“We can’t take it,” Mr. Moon said. “This is a problem not just for the employers, but for the employees.”

The NYT is quick to recover:

The discouraging early results don’t mean that Mr. Moon is wrong and Mr. Trump is right. Wage growth in the United States, though stronger in recent months, has generally remained stubbornly low despite the tightest labor market in a generation, and the American economy is widely expected to slow in 2019 as the economic sugar rush of Mr. Trump’s tax cuts wears off. Pro-business policies in Europe, where labor laws are being loosened, have been met with large-scale protests.

That’s true, but large-scale protests don’t mean that strict labor laws are right either. The article continues:

Mr. Moon aims to improve the incomes of average Korean families so they will consume more, thus reducing the economy’s reliance on exports and, with them, the ups and downs of the global economy. (Exports accounted for 43 percent of South Korea’s gross domestic product in 2017, compared with 20 percent for China.)

But joblessness hit an eight-year high in August of 4.2 percent after the new minimum wage took effect, though it has since improved. Growth was at 2 percent in the third quarter compared with the same period a year earlier, down from 2.8 percent in the second quarter.

The biggest problem is the strain on small businesses, which are often unable to pass on higher costs to their customers. In a 2017 survey of its members by a small-business organization known as Kbiz, 42 percent said they would be forced to shed employees because of the minimum wage increase.

Unsurprisingly, “Some union leaders argue that the minimum wage is not rising quickly enough, and they objected to a proposal that would give businesses more flexibility in meeting limits on working hours. On Nov. 21, an estimated 160,000 workers went on a general strike.” Some experts remain optimistic:

“It is difficult to catch two birds — economic growth and even distribution — with one stone,” said Jung Yoo-shin, dean of the Graduate School of Management of Technology at Sogang University in Seoul. “He needs more time.”

Frederic Neumann, co-head of Asian economics research at HSBC in Hong Kong, said South Korea’s export-led economy had been hurt more by the slowdown in global growth than the higher minimum wage. Though he is forecasting lower growth for South Korea in 2019, Mr. Neumann said lifting wages among lower-income people was good for the economy.

Maybe. Or maybe we should look at the economic evidence for minimum wage hikes.

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Currently Working without Pay: Border Patrol, FBI, etc.

© Tomas Castelazo, www.tomascastelazo.com / Wikimedia Commons / CC BY-SA 4.0

USA Today is reporting that many of the federal workers who specifically work to protect our country, and our borders, are working without pay due to the government shutdown. That’s right, Border Patrol, the FBI, and the Coast Guard are working without pay. (Also included: the TSA, but I think the security they add to our nation may be more up for debate).

The author, a Republican, has a lot to offer in terms of why Trump is doing this and how the GOP can let this fight go down in flames while still letting Trump say he did everything he could.

There is not a single person who actually thinks that forcing Border Patrol agents work without pay, or driving them to find new jobs, will somehow increase border security. So why has Trump painted himself into this corner?


I’m afraid that the answer is Trump actually does not care about border security at all. It has been obvious for quite some time that the main thing Donald Trump likes about being president is holding rallies. What he cares about is his “base” — specifically, the people who are willing to show up and cheer for him.

Chris Truax

Finally, if Congressional Republicans “betray” Trump, the stalemate could end, agents could be paid, and the fight for the wall could be taken up another day (if anyone currently in a position to fight for the wall actually wants it).

The kindest thing Republicans can do is to let Trump go down fighting. They should back the Democrats’ efforts to reopen the government and, if necessary, vote to override Trump’s veto. This will straighten out the shutdown mess while allowing Trump to claim he did everything he possibly could to keep faith with his fans but was stabbed in the back by “traitorous” Republicans.


This is a small price to pay for getting cash flowing once again into agencies such as the FBI and the Border Patrol that really do protect America. And being a “traitor” to Donald Trump is far preferable to being a traitor to common sense and the public good. 

Chris Truax

The Effects of Legalizing Immigrants

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Over at SMU’s Texas-Mexico Center blog, I wrote,

Despite the recent political rhetoric and anti-immigrant sentiments, the economic benefits of immigration are well-established in the empirical literature. A 2011 meta-analysis by economist Michael Clemens found that dropping all current immigration restrictions would result in a doubling of world GDP.

A more recent analysis corroborated these findings, concluding that lifting all migration restrictions would increase world output by 126%. In 2015, migrants made up 3.4% of the world population yet contributed about $6.7 trillion to global output—9.4% of world GDP. The McKinsey Global Institute estimates that this is $3 trillion more than these migrants would have produced had they stayed in their origin countries. Even undocumented workers in the United States contribute about 3.6% of private-sector GDP annually—around $6 trillion dollars over a 10-year period. Granting these migrants legal status would increase their contribution to 4.8%. 

On this last point, a recent study explores the effects of immigrant legalization in Spain. The authors explain the background for the natural experiment:

In the early 2000s, Spain experienced an incredible boom in immigration. The share of immigrants in the working-age population increased from less than 2% in 1995 to around 10% in 2004. Many of these newly arrived immigrants lacked work permits. By 2004, there were close to 1 million undocumented immigrants in a country of around 43 million inhabitants.

Despite this large number of undocumented immigrants, the government at the time, led by Jose Maria Aznar (Popular Party) and with Mariano Rajoy in its cabinet, was unlikely to legalise the work status of immigrants. Traditionally, the Popular Party had been proposing tougher policies against immigration. Its main stance was to avoid implementing policies that could attract new waves of immigrants. In this context, in the early 2000s, immigrants were granted work permits mostly on the basis of family reunification.

On 14 March 2004, voters in the Spanish general election had to determine whether the Popular Party would continue in power or be replaced by the Socialist Party. In the week before the election, the outcome seemed clear: the polls were forecasting that Zapatero of the Socialist Party was trailing Rajoy by seven percentage points. 

Yet, something completely unexpected happened just three days before the election which, as shown by Garcia-Montalvo (2011), changed the final outcome: Madrid suffered the largest terrorist attack in Spanish history, a tragedy that was poorly managed by the Popular Party. As a result, the Socialist Party came to power, and one of the first policies it implemented was the legalisation of nearly 600,000 immigrants already living (and working illegally) in Spain.

Using administrative payroll tax revenues, the authors find

that the legalisation of immigrants’ work status increased revenues locally — i.e. at the province level — by around €4,189 per newly legalised immigrant. This amount is only 55% of what we would have expected if newly legalised immigrants had shared the same characteristics as previous contributors to the social security system and had enjoyed similar labour market experiences. Two factors may explain this. First, newly legalised immigrants were perhaps disproportionately low-skilled and had worse labour market experiences than natives. Second, the legalisation may also have affected previous workers.

…Using very detailed administrative and survey data on wages and employment, we show that the policy change disproportionately affected the labour market outcomes of workers in high-immigrant locations relative to low-immigrant locations. In particular, it worsened employment opportunities for both low-skilled natives and immigrants, while it improved them for high-skilled workers. Among low-skilled natives, those who lost their jobs were negatively selected — the policy change negatively affected employment prospects of native low-skilled workers at the bottom of the wage distribution. Putting together all the labour market changes and comparing them to payroll tax revenue changes, we show that this negative selection is crucial to fully understand the effects of the reform.

We also show that, following the reform, many immigrants moved from high- to low-immigrant locations. This is important since these immigrants also contributed to payroll tax revenues, but in traditionally low-immigrant locations. This, in turn, means that comparing local payroll tax revenues in high- relative to low-immigrant locations to evaluate the effect of the policy may underestimate the true impact of immigrant legalisation on payroll tax revenues. Once we take into account internal migration and selection, we argue that the true contribution was almost €5,000 per newly legalised immigrant, i.e. substantially higher than what we would have been able to estimate on the basis of local tax revenue data alone.

Incoherent Know-Nothings

Cards Against Humanity’s Pulse of the Nation poll from 2017 to 2018 has some pretty interesting, disturbing, and rather unsurprising findings about the American public:

Conflicting Views

39.1% of Democrats think that it’s wrong to negatively stereotype people based on their place of birth, but also think Southerners are more racist.

65.2% of Republicans think that people are too easily offended, yet find Black Lives Matter offensive.

64.6% of Democrats think that a woman has the right to do what she wants with her body, except when it comes to selling her kidney. Nearly half also believe a woman has the right to do whatever she wants with her body, except sell it for sex.

57.9% of Republicans think that people should be free to express their political opinions in the workplace, but athletes shouldn’t be allowed to make political protests at games.

Over half of Democrats think that men and women “are equal in their talents and abilities,” except when it comes to multitasking and empathy.

About 1/3 of Republicans think we should be more suspicious of foreigners, yet believe Putin when he says he didn’t interfere in the 2016 election. (You’re twice as likely to do this if you support Trump.)

Over half of Republicans believe nobody deserves a handout and that the government should do more to help small, working-class towns in America’s heartland.

About 1/3 of Democrats say that they trust the scientific consensus, just not when it comes to GMOs.

Political Ignorance

39% of Americans either think low GDP is better than high GDP or have no clue altogether.

The majority of Americans can’t name the three branches of government.

Only 12.7% of Americans can name a living, breathing economist. 55.9% can’t name a living economist, but think their opinions about economic policy are well-informed.

The richest 1% of Americans own 39% of the country’s wealth. Everyone overestimates the amount. If you’re a Democrat, you think it is 75 percent. If you’re a Republican, you think it’s 50 percent. Perhaps surprisingly, the more educated you are, the more likely you are to overestimate the amount.

Nearly half of Americans do not believe the U.S. has interfered with foreign democratic elections. You’re less likely to believe it if you’re Republican.

Other Stuff

Those who think “sex without love” is okay are far more likely to be pro-choice.

If you rely on “common sense” instead of empirical evidence, you’re likely older, less educated, and lack a Twitter account. You also are more likely support military action against Russia for their 2016 election interference. 

29% of Trump supporters would still stick with him in 2020 even if he murdered journalist for spreading lies.

What Kind of Immigration Fuels Nationalism?

From a recent NBER Digest:

In Skill of Immigrants and Vote of the Natives: Immigration and Nationalism in European Elections 2007-16 (NBER Working Paper No. 25077), Simone Moriconi, Giovanni Peri, and Riccardo Turati explore the relationship between immigration and European elections. They develop an index of “nationalistic” attitudes of political parties to measure the shift in preferences among voters when confronted with influxes of skilled and unskilled immigrants. They find that larger inflows of highly educated immigrants dampen nationalistic sentiments, while larger inflows of less-educated immigrants heighten them. Their results imply that a more balanced inflow of high-skilled and low-skilled immigrants could attenuate voters’ nationalistic attitudes.

...The new study tracks voter attitudes and behavior for all political parties and elections in 12 European countries for a decade. It relies on demographic and political data from the European Social Survey and a number of other sources. In addition, the researchers collected and classified the political manifestos of 126 parties for 28 elections, focusing in particular on how frequently these materials mentioned nationalistic subjects, the European Union, and other indicators of where parties stood on the political spectrum.

The researchers found “that highly educated native voters are less nationalistic in their attitudes towards immigrants than less-educated natives. The data also show strong nationalistic sentiments in regional pockets in the United Kingdom, Ireland, France, Germany, Demark, Sweden, Norway and, especially, Italy.”

The results suggest that a 1 percent increase in the share of a country’s population who are immigrants in highly educated, highly skilled groups was associated with a 0.1 standard deviation voting change away from nationalism. An increase of comparable size in the number of less-educated and lower-skilled immigrants led to a 0.12 standard deviation voting change towards nationalism. The same patterns emerged when the researchers analyzed voter sentiment expressed in surveys. In this case, a 1 percent increase in high-skilled immigrants led to a 0.07 standard deviation decrease away from nationalism, while a 1 percent increase in lower-skilled immigrants lead to a 0.07 standard deviation increase in nationalism. The results were broadly similar regardless of whether the analysis focused on all immigrants or only on immigrants from non-EU nations.

Immigration is not only about ethnicity, but class as well.

What’s Behind Cuba’s Health Outcomes?

The above comes from Michael Moore’s Sicko. Cuba’s healthcare system is a common talking point among those of Moore’s persuasion. However, a recent study should give us pause regarding some of the overly positive claims about Cuba’s system. First, what people like Moore get right:

How is Cuba healthy while poor? Most attribute the fact to Cuba’s zero monetary cost health care system. There is some truth to that attribution. With 11.1% of GDP dedicated to health care and 0.8% of the population working as physicians, a substantial amount of resources is directed towards reducing infant mortality and increasing longevity. An economy with centralized economic planning by government like that of Cuba can force more resources into an industry than its population might desire in order to achieve improved outcomes in that industry at the expense of other goods and services the population might more highly desire (pg. 755).

However,

Centralized planning has disadvantages. Physicians are given health outcome targets to meet or face penalties. This provides incentives to manipulate data. Take Cuba’s much praised infant mortality rate for example. In most countries, the ratio of the numbers of neonatal deaths and late fetal deaths stay within a certain range of each other as they have many common causes and determinants. One study found that that while the ratio of late fetal deaths to early neonatal deaths in countries with available data stood between 1.04 and 3.03 (Gonzalez, 2015)—a ratio which is representative of Latin American countries as well (Gonzalez and Gilleskie, 2017). Cuba, with a ratio of 6, was a clear outlier. This skewed ratio is evidence that physicians likely reclassified early neonatal deaths as late fetal deaths, thus deflating the infant mortality statistics and propping up life expectancy. Cuban doctors were re-categorizing neonatal deaths as late fetal deaths in order for doctors to meet government targets for infant mortality.

Using the ratios found for other countries, corrections were proposed to the statistics published by the Cuban government: instead of 5.79 per 1000 births, the rate stands between 7.45 and 11.16 per 1000 births. Recalculating life expectancy at birth to account for these corrections (using WHO life tables and assuming that they are accurate depictions of reality), the life expectancy at birth of men by between 0.22 and 0.55 years (Gonzalez, 2015) (pg. 755).

But that’s not the only thing driving low infant mortality rates:

Coercing or pressuring patients into having abortions artificially improve infant mortality by preventing marginally riskier births from occurring help doctors meet their centrally fixed targets. At 72.8 abortions per 100 births, Cuba has one of the highest abortion rates in the world. If only 5% of the abortions are actually pressured abortions meant to keep health statistics up, life expectancy at birth must be lowered by a sizeable amount. If we combine the misreporting of late fetal deaths and pressured abortions, life expectancy would drop by between 1.46 and 1.79 years for men. In Figure 1 below, we show that that with this adjustment alone, instead of being first in the ranking of life expectancy at birth for men in Latin America and the Caribbean, Cuba falls either to the third or fourth place depending on the range (pg. 755-756).

The researchers explain, “Other repressive policies, unrelated to health care, contribute to Cuba’s health outcomes” (pg. 756) These include:

  • Restrictions in car ownership leading to low automobile fatalities.
  • Rationing combined with physically demanding transportation (e.g., cycling) contributing to reductions in obesity and deaths caused by diabetes, coronary heart diseases and strokes.

The researchers conclude,

Cuban mortality and longevity statistics appear impressive. They are a result of some combination of the government’s choice to allocate more resources into the health care industry (at the expense of other industries that could produce needed goods) and from coercive measures through both health delivery and economic planning that improve health statistics at the expense of other spheres of life.

Although the USA and other countries re-examine how to design health care delivery they should not uncritically accept the myth that the Cuban health care system has been the sole, or even the most important, cause of Cuba’s abnormally high longevity statistics. The role of Cuban economic and political oppression in coercing ‘good’ health outcomes merits further study (pg. 756).