October 2nd, 2021

Stranger

THE HART CELLER ACT

A rise in deportations of Haitian immigrants at the US-Mexico border has brought another cycle of media attention to the US immigration system and border security apparatus.

The modern US immigration system was largely shaped by the 1965 Hart Celler Act, which passed amidst a wave of civil rights reforms. In a 2010 article, MAE NGAI unpacks the political history of the legislation and its role in defining contemporary understandings of legal and illegal immigration.

From the text:

"The problem of our present system is that it is based on a core paradox: Our system of allocating visas for the admission of permanent residents—the vaunted green card—is based on principles of equality and fairness, yet that very system has generated an ever-larger caste-population of unauthorized immigrants. We rarely, if ever, question the principle embedded in Hart-Celler that we should treat every country the same. It is based on a logic of equality and fairness and was meant to replace the patently inequitable and discriminatory system of national origin and racial quotas that had governed immigration policy since the 1920s. It was also very much in line with the outlook of the civil rights era. That was the ethos of the time—Hart-Celler is often recalled as being of a piece with the Civil Rights Act of 1964 and the Voting Rights Act of 1965. It was also the self-conscious strategy of immigration reformers in the 1950s and early 1960s who decried the national origins quota system for its discrimination against eastern and southern Europeans.

When the initial hemispheric quotas under Hart-Celler went into effect in 1968, deportations to Mexico increased by forty percent, to 151,000. In 1976, when the country caps went into full effect, the United States deported 781,000 Mexicans. This compares with a total of 100,000 removals to all other countries in the world combined. By 1980 it was estimated that an illegal population of some two million people had accreted. There are now some twelve million unauthorized migrants in the United States. Three-quarters of them are from Mexico and Central America. They are the direct beneficiaries of legislation passed in the era of civil rights, founded on the principle of formal equality."

 Full Article

April 7th, 2018

The Worshipper

TARGET VARIABLE

Big data's effect on the credit-scoring industry

A lengthy 2016 article from the Yale Journal of Law and Technology delves into credit-scoring then suggests a new legislative framework.

Since 2008, lenders have only intensified their use of big-data profiling techniques. With increased use of smartphones, social media, and electronic means of payment, every consumer leaves behind a digital trail of data that companies—including lenders and credit scorers—are eagerly scooping up and analyzing as a means to better predict consumer behavior. The credit-scoring industry has experienced a recent explosion of start-ups that take an 'all data is credit data' approach that combines conventional credit information with thousands of data points mined from consumers' offline and online activities. Many companies also use complex algorithms to detect patterns and signals within a vast sea of information about consumers' daily lives. Forecasting credit risk on the basis of a consumer's retail preferences is just the tip of the iceberg; many alternative credit-assessment tools now claim to analyze everything from consumer browsing habits and social media activities to geolocation data.

Full article by MIKELLA HURLEY and JULIUS ADEBAYO here. ht Will

PREMIUM MOBILITY

Tallying the gains of migration

We recently linked to a paper by LANT PRITCHETT that challenged development orthodoxy by pointing out that the income gains for the subjects of best practice direct development interventions are about 40 times smaller than those from allowing the same people to work in a rich country like the United States.

Link, again, to that paper.

That argument was built upon previous scholarship that attempted to put rigorous numbers to the obvious intuition that migration is beneficial for those drawn to wealthy countries by labor markets. From a 2016 paper by Pritchett and co-authors MICHAEL CLEMENS and CLAUDIO MONTENEGRO:

"We use migrant selection theory and evidence to place lower bounds on the ad valorem equivalent of labor mobility barriers to the United States, with unique nationally-representative microdata on both US immigrant workers and workers in their 42 home countries. The average price equivalent of migration barriers in this setting, for low-skill males, is greater than $13,700 per worker per year."

 Full Article