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Migrant Self-Selection and Random Shocks: Evidence from the Panic of 1907

Author

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  • Escamilla-Guerrero, David
  • López-Alonso, Moramay

Abstract

We study the impact of the 1907 Panic, the most severe economic crisis before the Great Depression, on the selection of Mexican immigration. We find that migrants were positively selected on height before the crisis. This pattern changed to negative selection during the crisis but returned to positive selection afterward. Adjustments in selection were partially mediated by the enganche, a historical labor-recruiting system that reduced migration costs but only for taller laborers with above-average earnings potential. We document that labor recruiting contributed to maintaining the relatively constant height profile of the migration flow in the short run.

Suggested Citation

  • Escamilla-Guerrero, David & López-Alonso, Moramay, 2023. "Migrant Self-Selection and Random Shocks: Evidence from the Panic of 1907," The Journal of Economic History, Cambridge University Press, vol. 83(1), pages 45-85, March.
    • Handle: RePEc:cup:jechis:v:83:y:2023:i:1:p:45-85_2
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    Cited by:

    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).
    2. Clemens, Michael A. & Mendola, Mariapia, 2024. "Migration from developing countries: Selection, income elasticity, and Simpson’s paradox," Journal of Development Economics, Elsevier, vol. 171(C).

    More about this item

    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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