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Immigration and structural change: Evidence from post-war Germany

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  • Braun, Sebastian
  • Kvasnicka, Michael

Abstract

Does immigration accelerate sectoral change from low- to high-productivity sectors? This paper analyzes the effect of one of the largest population movements in history, the influx of millions of German expellees to West Germany after World War II, on Germany's speed of transition away from low-productivity agriculture. A simple two-sector specific factor model, in which moving costs prevent the marginal product of labor to be equalized across sectors, predicts that expellee inflows boost output per worker by expanding the high-productivity non-agricultural sector but decrease output per worker within sectors. Using German district-level data from before and after the war, we find empirical support for these predictions.

Suggested Citation

  • Braun, Sebastian & Kvasnicka, Michael, 2014. "Immigration and structural change: Evidence from post-war Germany," Journal of International Economics, Elsevier, vol. 93(2), pages 253-269.
  • Handle: RePEc:eee:inecon:v:93:y:2014:i:2:p:253-269
    DOI: 10.1016/j.jinteco.2014.03.006
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    Citations

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    Cited by:

    1. Chevalier, Arnaud & Elsner, Benjamin & Lichter, Andreas & Pestel, Nico, 2018. "Immigrant Voters, Taxation and the Size of the Welfare State," IZA Discussion Papers 11725, Institute for the Study of Labor (IZA).
    2. Franke, Richard, 2017. "The cost of remoteness revisited," Kiel Working Papers 2070, Kiel Institute for the World Economy (IfW).
    3. Braun, Sebastian & Dwenger, Nadja, 2017. "The local environment shapes refugee integration: Evidence from post-war Germany," Hohenheim Discussion Papers in Business, Economics and Social Sciences 10-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    4. Christoph Eder, 2014. "Missing Men: World War II Casualties and Structural Change," NRN working papers 2014-03, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    5. Sebastian Till Braun & Anica Kramer & Michael Kvasnicka, 2017. "Local Labor Markets and the Persistence of Population Shocks," Discussion Paper Series, Department of Economics 201715, Department of Economics, University of St. Andrews.
    6. Semrad, Alexandra, 2015. "Immigration and educational spillovers: evidence from Sudeten German expellees in post-war Bavaria," Discussion Papers in Economics 24851, University of Munich, Department of Economics.
    7. Braun, Sebastian & Weber, Henning, 2016. "How do regional labor markets adjust to immigration? A dynamic analysis for post-war Germany," Kiel Working Papers 2025, Kiel Institute for the World Economy (IfW).
    8. Arnaud Chevalier & Benjamin Elsner & Andreas Lichter & Nico Pestel, 2018. "Immigrant Voters, Taxation and the Size of the Welfare State," Working Papers 201820, Geary Institute, University College Dublin.
    9. Christian Ochsner, 2017. "Dismantled once, diverged forever? A quasi-natural experiment of Red Army misdeeds in post-WWII Europe," ifo Working Paper Series 240, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    10. Michael Wyrwich, 2018. "Migration restrictions and long-term regional development: evidence from large-scale expulsions of Germans after World War II," Jena Economic Research Papers 2018-002, Friedrich-Schiller-University Jena.
    11. repec:zbw:medamr:182240 is not listed on IDEAS
    12. Kurosaki, Takashi & Shonchoy, Abu S & Tsubota, Kenmei, 2018. "Displacement in Bengal, revisited," IDE Discussion Papers 709, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    13. Dragone, Davide & Ziebarth, Nicolas R., 2017. "Non-separable time preferences, novelty consumption and body weight: Theory and evidence from the East German transition to capitalism," Journal of Health Economics, Elsevier, vol. 51(C), pages 41-65.
    14. Jens Ruhose, 2015. "Microeconometric Analyses on Economic Consequences of Selective Migration," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61, January.

    More about this item

    Keywords

    Immigration; Sectoral change; Output growth; Post-war Germany;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-

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