Migration Creation, Diversion, and Retention: New Deal Grants and Migration: 1935-1940
AbstractDuring the 1930s the federal government embarked upon an ambitious series of grant programs designed to counteract the Great Depression. The amounts distributed varied widely across the country and potentially contributed to population shifts. We estimate an aggregate discrete choice model, in which household heads choose among 466 economic subregions. The structural model allows us to decompose the effects of program spending on migration into three categories: the effect of spending on keeping households in their origin (retention), the effect of pulling non-migrants out of their origin (creation), and the effect of causing migrants to substitute away from an alternative destination (diversion). An additional dollar of public works and relief spending increased net migration into an area primarily by retaining the existing population and creating new migration into the county. Only a small share of the increase in net migration rate was caused by diversion of people who had already chosen to migrate. AAA spending contributed to net out migration, primarily by creating new out migrants and repelling potential in migrants. A counterfactual analysis suggests that the uneven distribution of New Deal spending explains about twelve percent of the internal migration flows in the United States between 1935 and 1940.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13491.
Date of creation: Oct 2007
Date of revision:
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- Sorensen, Todd A. & Fishback, Price & Allen, Samuel K. & Kantor, Shawn, 2007. "Migration Creation, Diversion, and Retention: New Deal Grants and Migration: 1935-1940," IZA Discussion Papers 3060, Institute for the Study of Labor (IZA).
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-10-20 (All new papers)
- NEP-DCM-2007-10-20 (Discrete Choice Models)
- NEP-HIS-2007-10-20 (Business, Economic & Financial History)
- NEP-MIG-2007-10-20 (Economics of Human Migration)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Price V. Fishback & Shawn Kantor & John Joseph Wallis, 2002.
"Can the New Deal's Three R's Be Rehabilitated? A Program-by-Program, County-by-County Analysis,"
NBER Working Papers
8903, National Bureau of Economic Research, Inc.
- Fishback, Price V. & Kantor, Shawn & Wallis, John Joseph, 2003. "Can the New Deal's three Rs be rehabilitated? A program-by-program, county-by-county analysis," Explorations in Economic History, Elsevier, vol. 40(3), pages 278-307, July.
- P. B. Levine & D. J. Zimmerman, .
"An empirical analysis of the welfare magnet debate using the NLSY,"
Institute for Research on Poverty Discussion Papers
1098-96, University of Wisconsin Institute for Research on Poverty.
- Phillip B. Levine & David J. Zimmerman, 1999. "An empirical analysis of the welfare magnet debate using the NLSY," Journal of Population Economics, Springer, vol. 12(3), pages 391-409.
- Phillip B. Levine & David J. Zimmerman, 1995. "An Empirical Analysis of the Welfare Magnet Debate Using the NLSY," NBER Working Papers 5264, National Bureau of Economic Research, Inc.
- Kauffman, Kyle D. & Kiesling, L. Lynne, 1997. "Was there a nineteenth century welfare magnet in the United States?: Preliminary results from New York City and Brooklyn," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(2), pages 439-448.
- Fleck, Robert K, 1999. "The Value of the Vote: A Model and Test of the Effects of Turnout on Distributive Policy," Economic Inquiry, Western Economic Association International, vol. 37(4), pages 609-23, October.
- Whatley, Warren C., 1983. "Labor for the Picking: the New Deal in the South," The Journal of Economic History, Cambridge University Press, vol. 43(04), pages 905-929, December.
- John J. Wallis & Price V. Fishback & Shawn E. Kantor, 2006. "Politics, Relief, and Reform. Roosevelt’s Efforts to Control Corruption and Political Manipulation during the New Deal," NBER Chapters, in: Corruption and Reform: Lessons from America's Economic History, pages 343-372 National Bureau of Economic Research, Inc.
- Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 371-91, October.
- Price V. Fishback & William C. Horrace & Shawn Kantor, 2001. "Do Federal Programs Affect Internal Migration? The Impact of New Deal Expenditures on Mobility During the Great Depression," NBER Working Papers 8283, National Bureau of Economic Research, Inc.
- Blank, Rebecca M., 1988. "The effect of welfare and wage levels on the location decisions of female-headed households," Journal of Urban Economics, Elsevier, vol. 24(2), pages 186-211, September.
- J. F. Couch & P. M. Williams, 1999. "New Deal or Same Old Shuffle? The Distribution of New Deal Dollars Across Alabama," Economics and Politics, Wiley Blackwell, vol. 11(2), pages 213-223, 07.
- Cragg, M. & Kahn, M., 1995.
"New Estimates on Climate Demand: Evidence from Location Choice,"
1995_34, Columbia University, Department of Economics.
- Cragg, Michael & Kahn, Matthew, 1997. "New Estimates of Climate Demand: Evidence from Location Choice," Journal of Urban Economics, Elsevier, vol. 42(2), pages 261-284, September.
- 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.
- Reading, Don C., 1973. "New Deal Activity and the States, 1933 to 1939," The Journal of Economic History, Cambridge University Press, vol. 33(04), pages 792-810, December.
- Wright, Gavin, 1974. "The Political Economy of New Deal Spending: An Econometric Analysis," The Review of Economics and Statistics, MIT Press, vol. 56(1), pages 30-38, February.
- Alston, Lee J., 1981. "Tenure choice in Southern agriculture, 1930-1960," Explorations in Economic History, Elsevier, vol. 18(3), pages 211-232, July.
- Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
- Jim F. Couch & Keith E. Atkinson & William H. Wells, 1998. "New Deal Agricultural Appropriations: A Political Influence," Eastern Economic Journal, Eastern Economic Association, vol. 24(2), pages 137-148, Spring.
- 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.
- Wallis, John Joseph, 1987. "Employment, Politics, and Economic Recovery during the Great Depression," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 516-20, August.
- Fleck, Robert K, 2001. " Inter-party Competition, Intra-party Competition, and Distributive Policy: A Model and Test Using New Deal Data," Public Choice, Springer, vol. 108(1-2), pages 77-100, July.
- Edward M. Gramlich & Deborah S. Laren, 1984. "Migration and Income Redistribution Responsibilities," Journal of Human Resources, University of Wisconsin Press, vol. 19(4), pages 489-511.
- Borjas, George J. & Bronars, Stephen G. & Trejo, Stephen J., 1992.
"Self-selection and internal migration in the United States,"
Journal of Urban Economics,
Elsevier, vol. 32(2), pages 159-185, September.
- George J. Borjas & Stephen G. Bronars & Stephen J. Trejo, 1992. "Self-Selection and Internal Migration in the United States," NBER Working Papers 4002, National Bureau of Economic Research, Inc.
- repec:cup:etheor:v:13:y:1997:i:2:p:185-213 is not listed on IDEAS
- David Strömberg, 2004. "Radio's Impact on Public Spending," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 189-221, February.
- Marilyn Young & Michael Reksulak & William F. Shughart, 2001. "The Political Economy of the IRS," Economics and Politics, Wiley Blackwell, vol. 13(2), pages 201-220, 07.
- Wallis, John Joseph & Benjamin, Daniel K., 1981. "Public Relief and Private Employment in the Great Depression," The Journal of Economic History, Cambridge University Press, vol. 41(01), pages 97-102, March.
- Cardell, N. Scott, 1997. "Variance Components Structures for the Extreme-Value and Logistic Distributions with Application to Models of Heterogeneity," Econometric Theory, Cambridge University Press, vol. 13(02), pages 185-213, April.
- Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
- Canaday, Neil & Jaremski, Matthew, 2012. "Legacy, location, and labor: Accounting for racial differences in postbellum cotton production," Explorations in Economic History, Elsevier, vol. 49(3), pages 291-302.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.