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More Hands, More Power? Estimating the Impact of Immigration on Output and Technology Choices Using Early 20th Century US Agriculture

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  • Jeanne Lafortune
  • José Tessada
  • Carolina González-Velosa

Abstract

Can shifts in output mix or technologies attenuate the impact of immigration on wages? We explore this using immigration-induced changes in relative labor supply at the county level in US Censuses of Agriculture in early 20th century. An increase in labor supply induced a shift away from capital-intensive crops and a reduction in farm size. Crop mix adjustments were more likely in counties less specialized in a given crop while adjustments in technological and organization changes were more marked in the rest. Suggestive evidence indicates that crop mix adjustments, but not organizational changes, were sufficient to limit wage impacts.

Suggested Citation

  • Jeanne Lafortune & José Tessada & Carolina González-Velosa, 2013. "More Hands, More Power? Estimating the Impact of Immigration on Output and Technology Choices Using Early 20th Century US Agriculture," Documentos de Trabajo 431, Instituto de Economia. Pontificia Universidad Católica de Chile..
    • Handle: RePEc:ioe:doctra:431
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    Cited by:

    1. Ran Abramitzky & Philipp Ager & Leah Platt Boustan & Elior Cohen & Casper W. Hansen, 2019. "The Effects of Immigration on the Economy: Lessons from the 1920s Border Closure," NBER Working Papers 26536, National Bureau of Economic Research, Inc.
    2. Xie, Bin, 2017. "The Effects of Immigration Quotas on Wages, the Great Black Migration, and Industrial Development," IZA Discussion Papers 11214, Institute of Labor Economics (IZA).
    3. Michael A. Clemens & Ethan G. Lewis & Hannah M. Postel, 2018. "Immigration Restrictions as Active Labor Market Policy: Evidence from the Mexican Bracero Exclusion," American Economic Review, American Economic Association, vol. 108(6), pages 1468-1487, June.
    4. Paul Gaggl & Greg C. Wright, 2017. "A Short-Run View of What Computers Do: Evidence from a UK Tax Incentive," American Economic Journal: Applied Economics, American Economic Association, vol. 9(3), pages 262-294, July.
    5. Franck, Raphaël, 2022. "Labor Scarcity, Technology Adoption and Innovation: Evidence from the Cholera Pandemics in 19th Century France," CEPR Discussion Papers 16928, C.E.P.R. Discussion Papers.
    6. Rotunno, Lorenzo & Wood, Adrian, 2020. "Wage inequality and skill supplies in a globalised world," Journal of Comparative Economics, Elsevier, vol. 48(3), pages 529-547.
    7. David Andersson & Mounir Karadja & Erik Prawitz, 2022. "Mass Migration and Technological Change," Journal of the European Economic Association, European Economic Association, vol. 20(5), pages 1859-1896.
    8. Ran Abramitzky & Philipp Ager & Leah Boustan & Elior Cohen & Casper Hansen, 2021. "The Effect of Immigration on Local Labor Markets: Lessons from the 1920s Border Closure," Research Working Paper RWP 21-09, Federal Reserve Bank of Kansas City.
    9. Tianyuan Luo & Genti Kostandini & Jeffrey L. Jordan, 2023. "Stringent immigration enforcement and the farm sector: Evidence from E‐Verify adoption across states," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 1211-1232, June.
    10. Lewis, Ethan & Peri, Giovanni, 2015. "Immigration and the Economy of Cities and Regions," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 625-685, Elsevier.
    11. Tianyuan Luo & Genti Kostandini, 2022. "Stringent immigration enforcement and responses of the immigrant‐intensive sector: Evidence from E‐Verify adoption in Arizona," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(4), pages 1411-1434, August.
    12. Braun, Sebastian Till & Weber, Henning, 2021. "How do regional labor markets adjust to immigration? A dynamic analysis for post-war Germany," Journal of International Economics, Elsevier, vol. 129(C).
    13. Ifft, Jennifer & Jodlowski, Margaret, 2022. "Is ICE freezing US agriculture? Farm-level adjustment to increased local immigration enforcement," Labour Economics, Elsevier, vol. 78(C).
    14. Pandey, Manish & Ray Chaudhuri, Amrita, 2017. "Immigration-induced effects of changes in size and skill distribution of the labor force on wages in the U.S," Journal of Macroeconomics, Elsevier, vol. 52(C), pages 118-134.
    15. Timothy J Hatton & Zachary Ward, 2018. "International Migration in the Atlantic Economy 1850 - 1940," CEH Discussion Papers 02, Centre for Economic History, Research School of Economics, Australian National University.
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    More about this item

    Keywords

    Immigration; Agriculture; Output mix; Technological change;
    All these keywords.

    JEL classification:

    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • N51 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: Pre-1913

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