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=round(#,0). Figure 1. California Manicurists, 1987-2002. Do Vietnamese manicurists displace native manicurists? . Empirical Specification. Viet Manicurists (#). Time Trend…T=0,…,15. Non-Viet Manicurists (#). CA Manicurists, 2002. Los Angeles. Non-Viet Manicurists (#).

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  1. =round(#,0)

  2. Figure 1. California Manicurists, 1987-2002

  3. Do Vietnamese manicurists displace native manicurists? Empirical Specification Viet Manicurists (#) Time Trend…T=0,…,15 Non-Viet Manicurists (#) CA Manicurists, 2002 Los Angeles Non-Viet Manicurists (#) Viet Manicurists (#)

  4. Do Vietnamese manicurists displace native manicurists? Empirical Specification Viet Manicurists (# per thousand residents) Time Trend…T=0,…,15 Non-Viet Manicurists (# per 1000 residents)

  5. Table 1. Explaining the Number of Non-Vietnamese Manicurists using WLS

  6. Unobserved demand shocks that vary across cities, e.g., increased demand by “tweens” and their parents in Contra Costa, according to a couple of newspaper articles. True Model where Assume Empirical Specification

  7. Vietnamese manicurists are drawn to cities with positive demand shocks and away from those with negative shocks. Increases in demand increase the number of native manicurists. Displacement effect Upward bias: the expected value of the estimated displacement effect is less negative than the true displacement effect.

  8. Instrumental Variable (IV) Estimation instrumental variable Instrument relevance: Instrument exogeneity: z = historical size of Vietnamese enclave (VietEnclave)

  9. endogenous component, being part of the market for manicurists. exogenous component, being determined outside of the market for manicurists Cov(VE, Cov(VE, Hence, the instrument, , is likely to be relevant. Instrument purges of the component attributable to the demand shock due to some cities growing faster than others. Instrument exogeneity: The historical size of Vietnamese Enclaves (VE) is likely to be a validinstrument.

  10. Magic for now; explained after Thanksgiving Break ivregress 2sls nonvietpc (vietpc= VietEnclave) T [aweight= pop]

  11. Table 1. Explaining the Number of Non-Vietnamese Manicurists using WLS

  12. Displace versus replacement

  13. 1989 Oxnard, CA 1990 1991 Non-Vietnamese Manicurists (# per thou residents) Vietnamese Manicurists (# per thou residents)

  14. Explaining City Fixed Effects Non-Viet Manicurists (# per 1,000 residents) Riverside San Diego San Jose (Silicon Valley)

  15. 3. What is the return to learning English for immigrants? True Model where Mexican-born workers in 1980 Assume Empirical Specification

  16. Instrumental Variables Questions 1. What is the price elasticity of demand for cremations?

  17. Instrumental Variables Questions 1. What is the price elasticity of demand for cremations? True Model where Assume Empirical Specification

  18. Instrumental Variable Instrument relevance: Instrument exogeneity: Example 15.3: z=cig tax, x=packs smoked  suggests using R2E laws

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