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The Effect of Immigration Restrictions on Local Labor Markets: Lessons from the 1920s Border Closure

Author

Listed:
  • Ran Abramitzky
  • Philipp Ager
  • Leah Boustan
  • Elior Cohen
  • Casper W. Hansen

Abstract

In the 1920s, the United States substantially reduced immigration by imposing country-specific entry quotas. We compare local labor markets differentially exposed to the quotas due to variation in the national-origin mix of their immigrant population. US-born workers in areas losing immigrants did not benefit relative to workers in less exposed areas. Instead, in urban areas, European immigrants were replaced with internal migrants and immigrants from Mexico and Canada. By contrast, farmers shifted toward capital-intensive agriculture, and the immigrant-intensive mining industry contracted. These differences highlight the uneven effects of the quota system at the local level.

Suggested Citation

  • Ran Abramitzky & Philipp Ager & Leah Boustan & Elior Cohen & Casper W. Hansen, 2023. "The Effect of Immigration Restrictions on Local Labor Markets: Lessons from the 1920s Border Closure," American Economic Journal: Applied Economics, American Economic Association, vol. 15(1), pages 164-191, January.
    • Handle: RePEc:aea:aejapp:v:15:y:2023:i:1:p:164-91
    DOI: 10.1257/app.20200807
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    Citations

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    Cited by:

    1. Takuma Sugiyama, 2024. "Does the Restriction Policy of High-skill Immigrants Benefit Native Workers?," Discussion Paper Series DP2024-01, Research Institute for Economics & Business Administration, Kobe University.
    2. Andreas Vortisch, 2023. "The impact of the Johnson–Reed Act on Filipino labor market outcomes," French Stata Users' Group Meetings 2023 12, Stata Users Group.
    3. Escamilla Guerrero, David & Lepistö, Miko & Minns, Chris, 2022. "Explaining gender differences in migrant sorting: evidence from Canada-US migration," Economic History Working Papers 117260, London School of Economics and Political Science, Department of Economic History.
    4. Raux, Morgan, 2023. "Recruitment Competition and Labor Demand for High-Skilled Foreign Workers," IZA Discussion Papers 16554, Institute of Labor Economics (IZA).
    5. Agostina Brinatti & Xing Guo, 2023. "Third-Country Effects of U.S. Immigration Policy," Staff Working Papers 23-60, Bank of Canada.

    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • K37 - Law and Economics - - Other Substantive Areas of Law - - - Immigration Law
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-
    • N42 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: 1913-
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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