5. The following table shows the unemployment rates for Blacks in Miami and in four comparison cities before and after the Mariel boatlift in 1980 as well as the Mariel boatlift that did not happen in 1994. Unemployment rates for Blacks Miami Atlanta Houston Los Angeles Tampa-St. Petersburg Before (1980) 8.3 11.7 8.9 7.9 12.7 After (1980) 9.6 14.3 12.4 9.1 14.6 Before (1994) 10.1 11.4 10.8 9.2 14.6 After (1994) 13.7 5.2 14.6 10.4 5.0 b) Calculate the difference-in-difference estimate for the effect of 1994 Mariel boatlift that did not happen on unemployment rate. Does the difference-in-difference estimate represent the causal effect? Explain why or why noy.
5. The following table shows the unemployment rates for Blacks in Miami and in four comparison cities before and after the Mariel boatlift in 1980 as well as the Mariel boatlift that did not happen in 1994. Unemployment rates for Blacks Miami Atlanta Houston Los Angeles Tampa-St. Petersburg Before (1980) 8.3 11.7 8.9 7.9 12.7 After (1980) 9.6 14.3 12.4 9.1 14.6 Before (1994) 10.1 11.4 10.8 9.2 14.6 After (1994) 13.7 5.2 14.6 10.4 5.0 b) Calculate the difference-in-difference estimate for the effect of 1994 Mariel boatlift that did not happen on unemployment rate. Does the difference-in-difference estimate represent the causal effect? Explain why or why noy.
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
Problem 7P
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Transcribed Image Text:5. The following table shows the unemployment rates for Blacks in Miami and in four
comparison cities before and after the Mariel boatlift in 1980 as well as the Mariel boatlift that
did not happen in 1994.
Unemployment rates for Blacks
Miami
Atlanta
Houston
Los Angeles
Tampa-St.
Petersburg
Before (1980)
8.3
11.7
8.9
7.9
12.7
After (1980)
9.6
14.3
12.4
9.1
14.6
Before (1994)
10.1
11.4
10.8
9.2
14.6
After (1994)
13.7
5.2
14.6
10.4
5.0
b) Calculate the difference-in-difference estimate for the effect of 1994 Mariel boatlift that
did not happen on unemployment rate. Does the difference-in-difference estimate represent
the causal effect? Explain why or why noy.
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