Thursday, April 30, 2009

Some great new research

  • Carlos Dobkin and Nancy Nicosia have compiled evidence of the effect of the U.S. governments effort to reduce the supply of meth. At first the government was very successful in disrupting the market, but in the long-run, it looks like the program had little effect on the drug market.
  • Francesc Ortega and Giovanni Peri look at the effect of immigration into OECD countries and find that "immigration increases employment one for one, implying no crowding-out of natives ... These results imply that immigration increases the total GDP of the receiving country in the short-run one-for-one,without affecting average wages or labor productivity".
  • Ever heard of the "magic carpet ride" in which 50,000 Yemenites were moved all over Israel back in 1949? I had not, but Eric Gould, Victor Lavy and M. Daniele Paserman have tracked down the immigrants to determine the long-run impact of the move. Their results suggest that "children who were placed in a good environment (a home with good sanitary conditions, in a city, and outside of an ethnic enclave) were more likely to achieve positive long-term outcomes." At least for these people, nurture does matter, a lot.

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