The Effect of Immigration Restrictions on Local Labor Markets: Lessons from the 1920s Border Closure
American Economic Journal: Applied Economics
vol. 15,
no. 1, January 2023
(pp. 164-91)
Abstract
In the 1920s, the United States substantially reduced immigration by imposing country-specific entry quotas. We compare local labor markets differentially exposed to the quotas due to variation in the national-origin mix of their immigrant population. US-born workers in areas losing immigrants did not benefit relative to workers in less exposed areas. Instead, in urban areas, European immigrants were replaced with internal migrants and immigrants from Mexico and Canada. By contrast, farmers shifted toward capital-intensive agriculture, and the immigrant-intensive mining industry contracted. These differences highlight the uneven effects of the quota system at the local level.Citation
Abramitzky, Ran, Philipp Ager, Leah Boustan, Elior Cohen, and Casper W. Hansen. 2023. "The Effect of Immigration Restrictions on Local Labor Markets: Lessons from the 1920s Border Closure." American Economic Journal: Applied Economics, 15 (1): 164-91. DOI: 10.1257/app.20200807Additional Materials
JEL Classification
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J18 Demographic Economics: Public Policy
- J31 Wage Level and Structure; Wage Differentials
- K37 Immigration Law
- N32 Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: U.S.; Canada: 1913-
- N42 Economic History: Government, War, Law, International Relations, and Regulation: U.S.; Canada: 1913-
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
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