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Migrant self-selection in the presence of random shocks. Evidence from the Panic of 1907

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  • David Escamilla-Guerrero
  • Moramay Lopez-Alonso

Abstract

We evaluate the responsiveness of migrant self-selection to short-run changes in the economic environment. Using novel historical micro data, we estimate the initial selectivity of Mexican migration (1906-08) and focus on labor institutions as short-run adjustment channels of self-selection. We find that the first Mexican migrants were positively self-selected on the basis of height—a proxy for physical productivity of labor. Additionally, the US financial crisis of 1907 significantly modified self-selection. Shifts in migrant self-selection during and after the crisis were influenced by the enganche, an institution that reduced migration costs, but only for the “best†Mexicans during “good†economic times.

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  • David Escamilla-Guerrero & Moramay Lopez-Alonso, 2020. "Migrant self-selection in the presence of random shocks. Evidence from the Panic of 1907," Oxford Economic and Social History Working Papers _179, University of Oxford, Department of Economics.
    • Handle: RePEc:oxf:esohwp:_179
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    1. Escamilla-Guerrero, David & Kosack, Edward & Ward, Zachary, 2021. "Life after crossing the border: Assimilation during the first Mexican mass migration," Explorations in Economic History, Elsevier, vol. 82(C).

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    More about this item

    Keywords

    labor migration; migrant self-selection; Panic of 1907; Mexico;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • N36 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Latin America; Caribbean
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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