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Mass Migration and Technological Change

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  • Andersson, David
  • Karadja, Mounir
  • Prawitz, Erik

    (Research Institute of Industrial Economics)

Abstract

This paper studies the effect of emigration on technological change in sending locations after one of the largest migration events in human history, the mass migration from Europe to the United States in the 19th century. To establish causality, we adopt an instrumental variable strategy that combines local growing-season frost shocks with proximity to emigration ports. We document two sets of results. First, using novel data on technological patents, we find that emigration led to an increase in innovative activity in sending municipalities. Moreover, the increase in innovation is coupled with an increased adoption of new technologies in both the agricultural and industrial sectors. Second, in terms of local economic development, we find that emigration led to higher unskilled wages in agriculture, a shift towards employment in the nascent industrial sector, a larger presence of incorporated firms, as well as higher tax revenues.

Suggested Citation

  • Andersson, David & Karadja, Mounir & Prawitz, Erik, 2020. "Mass Migration and Technological Change," SocArXiv 74ub8, Center for Open Science.
    • Handle: RePEc:osf:socarx:74ub8
    DOI: 10.31219/osf.io/74ub8
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    Cited by:

    1. Dicarlo, Emanuele, 2022. "How Do Firms Adjust to Negative Labor Supply Shocks? Evidence from Migration Outflows," IZA Discussion Papers 14994, Institute of Labor Economics (IZA).
    2. Pettersson-Lidbom, Per, 2020. "Exit, Voice and Political Change: Evidence from Swedish Mass Migration to the United States A Comment," Research Papers in Economics 2020:3, Stockholm University, Department of Economics, revised 20 Sep 2020.
    3. Nina Boberg-Fazlić & Markus Lampe & Paul Sharp, 2021. "The Sleeping Giant Who Left for America: The Determinants and Impact of Danish Emigration During the Age of Mass Migration," Working Papers 0213, European Historical Economics Society (EHES).
    4. Rabia Arif & Theresa Thompson Chaudhry & Azam Amjad Chaudhry, 2023. "Emigration’s Heterogeneous Impact on Children’s Wellbeing in Punjab, Pakistan," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 16(3), pages 1251-1295, June.
    5. Erminia Florio, 2019. "Are We in The Same Boat? The Legacy of Historical Emigration on Attitudes towards Immigrants," CEIS Research Paper 478, Tor Vergata University, CEIS, revised 12 Nov 2021.
    6. 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.
    7. Nathan Nunn, 2019. "Rethinking economic development," Canadian Journal of Economics, Canadian Economics Association, vol. 52(4), pages 1349-1373, November.
    8. David Hémous & Morten Olsen, 2021. "Directed Technical Change in Labor and Environmental Economics," Annual Review of Economics, Annual Reviews, vol. 13(1), pages 571-597, August.
    9. Mounir Karadja & Erik Prawitz, 2019. "Exit, Voice, and Political Change: Evidence from Swedish Mass Migration to the United States," Journal of Political Economy, University of Chicago Press, vol. 127(4), pages 1864-1925.
    10. Florio, Erminia & Manfredonia, Stefano, 2021. "Ancestors, inter-generational transmission of attitudes, and corporate performance: Evidence from the Italian Mass Migration," GLO Discussion Paper Series 830, Global Labor Organization (GLO).
    11. Emanuele Dicarlo, 2022. "How do firms adjust to a negative labor supply shock? Evidence form migration outflows," Temi di discussione (Economic working papers) 1361, Bank of Italy, Economic Research and International Relations Area.

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