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Transatlantic wage gaps and the migration decision: Europe–Canada in the 1920s

Author

Listed:
  • Alex Armstrong

    (Department of Economics, University of Ottawa, Ottawa, Canada)

  • Frank D. Lewis

    (Department of Economics, Queen’s University, Kingston, Canada)

Abstract

As has been seen in other contexts, workers in similar occupations earned much higher wages in Canada than Europe during the 1920s. This observation and related aspects of immigration are addressed with a life-cycle model of the migration decision. The characteristics of immigrants from five European countries: Ireland, Italy, the Netherlands, Poland, and Sweden, are explored in a way that sheds light not just on those population flows but on the process of immigration generally. We draw on passenger manifests from immigrant ships for information on the individual migrants. Simulations, based partly on the these manifests, reveal that the costs of migration, borrowing constraints, concern for status, and country-specific taste preferences account for key immigrant characteristics, and help explain the large wage differentials that persisted despite Canada’s relatively open immigration policy.

Suggested Citation

  • Alex Armstrong & Frank D. Lewis, 2017. "Transatlantic wage gaps and the migration decision: Europe–Canada in the 1920s," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 11(2), pages 153-182, May.
    • Handle: RePEc:afc:cliome:v:11:y:2017:i:2:p:153-182
    DOI: 10.1007/s11698-016-0141-x
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    Cited by:

    1. Gillian C. Hamilton & Ian Keay & Frank D. Lewis, 2017. "Contributions to Canadian economic history: The last 30 years," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1632-1657, December.
    2. Timothy J. Hatton & Zachary Ward, 2024. "International Migration in the Atlantic Economy 1850–1940," Springer Books, in: Claude Diebolt & Michael Haupert (ed.), Handbook of Cliometrics, edition 3, pages 507-535, Springer.
    3. Carlo Ciccarelli & Alberto Dalmazzo & Daniela Vuri, 2021. "Home Sweet Home: the Effect of Sugar Protectionism on Emigration in Italy, 1876‐1913," Papers in Regional Science, Wiley Blackwell, vol. 100(4), pages 925-957, August.

    More about this item

    Keywords

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    JEL classification:

    • 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-
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-

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