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The Effect of Internal Migration on Local Labor Markets: American Cities During the Great Depression

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Author Info
Leah Platt Boustan
Price V. Fishback
Shawn E. Kantor

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Abstract

During the Great Depression, as today, migrants were accused of taking jobs and crowding relief rolls. At the time, protest concerned internal migrants rather than the foreign born. We investigate the effect of net migration on local labor markets, instrumenting for migrant flows to a destination with extreme weather events and variation in New Deal programs in typical sending areas. Migration had little effect on the hourly earnings of existing residents. Instead, migration prompted some residents to move away and others to lose weeks of work and/or access to relief jobs. Given the period's high unemployment, these lost work opportunities were costly to existing residents.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13276.

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Date of creation: Jul 2007
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Handle: RePEc:nbr:nberwo:13276

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Find related papers by JEL classification:
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
N32 - Economic History - - Labor and Consumers, Demography, Education, Income, and Wealth - - - U.S.; Canada: 1913-
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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  1. Ethan Lewis, 2004. "How did the Miami labor market absorb the Mariel immigrants?," Working Papers 04-3, Federal Reserve Bank of Philadelphia. [Downloadable!]
  2. Gianmarco I.P. Ottaviano & Giovanni Peri, 2006. "Rethinking the Effects of Immigration on Wages," NBER Working Papers 12497, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Price V. Fishback & Michael R. Haines & Shawn Kantor, 2005. "Births, Deaths, and New Deal Relief during the Great Depression," NBER Working Papers 11246, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. David Strömberg, 2004. "Radio's Impact on Public Spending," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 189-221, February. [Downloadable!] (restricted)
  5. Fishback, Price V. & Horrace, William C. & Kantor, Shawn, 2006. "The impact of New Deal expenditures on mobility during the Great Depression," Explorations in Economic History, Elsevier, vol. 43(2), pages 179-222, April. [Downloadable!] (restricted)
  6. George J. Borjas, 2001. "Does Immigration Grease the Wheels of the Labor Market?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 32(2001-1), pages 69-134. [Downloadable!]
  7. Fishback, Price V. & Haines, Michael R. & Kantor, Shawn, 2001. "The Impact of the New Deal on Black and White Infant Mortality in the South," Explorations in Economic History, Elsevier, vol. 38(1), pages 93-122, January. [Downloadable!] (restricted)
  8. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1992-1), pages 1-76. [Downloadable!]
  9. Friedberg, Rachel M & Hunt, Jennifer, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring. [Downloadable!] (restricted)
    Other versions:
  10. George J. Borjas, 2005. "Native Internal Migration and the Labor Market Impact of Immigration," NBER Working Papers 11610, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Levy, Mildred B & Wadycki, Walter J, 1974. " What Is the Opportunity Cost of Moving? Reconsideration of the Effects of Distance on Migration," Economic Development and Cultural Change, University of Chicago Press, vol. 22(2), pages 198-214, January.
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  13. Bernanke, Ben S, 1986. "Employment, Hours, and Earnings in the Depression: An Analysis of EightManufacturing Industries," American Economic Review, American Economic Association, vol. 76(1), pages 82-l09, March. [Downloadable!] (restricted)
    Other versions:
  14. Horrace, William C. & Oaxaca, Ronald L., 2006. "Results on the bias and inconsistency of ordinary least squares for the linear probability model," Economics Letters, Elsevier, vol. 90(3), pages 321-327, March. [Downloadable!] (restricted)
  15. George J. Borjas, 2003. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1335-1374, November. [Downloadable!] (restricted)
    Other versions:
  16. Leah Platt Boustan, 2007. "Was Postwar Suburbanization "White Flight"? Evidence from the Black Migration," NBER Working Papers 13543, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. Ethan Lewis, 2003. "Local, open economies within the U.S.: how do industries respond to immigration?," Working Papers 04-1, Federal Reserve Bank of Philadelphia. [Downloadable!]
  18. Wallis, John Joseph, 1989. "Employment in the Great Depression: New data and hypotheses," Explorations in Economic History, Elsevier, vol. 26(1), pages 45-72, January. [Downloadable!] (restricted)
  19. Schwartz, Aba, 1973. "Interpreting the Effect of Distance on Migration," Journal of Political Economy, University of Chicago Press, vol. 81(5), pages 1153-69, Sept.-Oct. [Downloadable!] (restricted)
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