The effects of immigration on the economy: Lessons from the 1920s border closure


Abramitzky, Ran ; Ager, Philipp ; Boustan, Leah ; Cohen, Elior David ; Hansen, Casper Worm



URL: https://cepr.org/active/publications/discussion_pa...
Document Type: Working paper
Year of publication: 2019
The title of a journal, publication series: Discussion Papers / CEPR
Volume: 14165
Place of publication: London
Publishing house: Centre for Economic Policy Research
ISSN: 0265-8003
Publication language: English
Institution: School of Law and Economics > VWL, Angewandte Makroökonomik (Ager 2021-)
Subject: 330 Economics
Classification: JEL: J61 , J70 , N32,
Keywords (English): immigration restrictions , labor mobility , local labor markets
Abstract: In the 1920s, the United States substantially reduced immigrant entry by imposing country-specific quotas. We compare local labor markets with more or less exposure to the national quotas due to differences in initial immigrant settlement. A puzzle emerges: the earnings of existing US-born workers decline after the border closure, despite the loss of immigrant labor supply. We find that more skilled US-born workers - along with unrestricted immigrants from Mexico and Canada - move into affected urban areas, completely replacing European immigrants. By contrast, the loss of immigrant workers encouraged farmers to shift toward capital-intensive agriculture and discourage entry from unrestricted workers.

Dieser Datensatz wurde nicht während einer Tätigkeit an der Universität Mannheim veröffentlicht, dies ist eine Externe Publikation.




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