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More hands, more power? Estimating the impact of immigration on output and technology choices using early 20th century US agriculture

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  • Lafortune, Jeanne
  • Tessada, José
  • González-Velosa, Carolina

Abstract

We study the impact of immigration-induced changes in labor supply within agriculture in the US during early 20th century, a sector where shifting output mix may be easier than in previously studied industries (manufacturing), on output and production choices. We find evidence of output mix adjustments at the county-level in response to immigration as predicted by trade models. Moreover, that response is only visible in diversified counties. Counties with higher initial specialization, likely with higher degree of factor (land) specificity, responded instead through input mixes and organizational changes. Suggestive evidence indicates that crop mix adjustments alone, without organizational changes, absorbed an important part of changes in labor endowments in diversified counties.

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  • Lafortune, Jeanne & Tessada, José & González-Velosa, Carolina, 2015. "More hands, more power? Estimating the impact of immigration on output and technology choices using early 20th century US agriculture," Journal of International Economics, Elsevier, vol. 97(2), pages 339-358.
    • Handle: RePEc:eee:inecon:v:97:y:2015:i:2:p:339-358
    DOI: 10.1016/j.jinteco.2015.07.008
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    Cited by:

    1. Ran Abramitzky & Philipp Ager & Leah Platt Boustan & Elior Cohen & Casper W. Hansen, 2019. "The Effects of Immigration on the Economy: Lessons from the 1920s Border Closure," NBER Working Papers 26536, National Bureau of Economic Research, Inc.
    2. Xie, Bin, 2017. "The Effects of Immigration Quotas on Wages, the Great Black Migration, and Industrial Development," IZA Discussion Papers 11214, Institute of Labor Economics (IZA).
    3. Michael A. Clemens & Ethan G. Lewis & Hannah M. Postel, 2018. "Immigration Restrictions as Active Labor Market Policy: Evidence from the Mexican Bracero Exclusion," American Economic Review, American Economic Association, vol. 108(6), pages 1468-1487, June.
    4. Paul Gaggl & Greg C. Wright, 2017. "A Short-Run View of What Computers Do: Evidence from a UK Tax Incentive," American Economic Journal: Applied Economics, American Economic Association, vol. 9(3), pages 262-294, July.
    5. Raphaël Franck, 2024. "Labor scarcity, technology adoption and innovation: evidence from the cholera pandemics in 19th century France," Journal of Economic Growth, Springer, vol. 29(4), pages 543-583, December.
    6. Rotunno, Lorenzo & Wood, Adrian, 2020. "Wage inequality and skill supplies in a globalised world," Journal of Comparative Economics, Elsevier, vol. 48(3), pages 529-547.
    7. David Andersson & Mounir Karadja & Erik Prawitz, 2022. "Mass Migration and Technological Change," Journal of the European Economic Association, European Economic Association, vol. 20(5), pages 1859-1896.
    8. Ran Abramitzky & Philipp Ager & Leah Boustan & Elior Cohen & Casper Hansen, 2021. "The Effect of Immigration on Local Labor Markets: Lessons from the 1920s Border Closure," Research Working Paper RWP 21-09, Federal Reserve Bank of Kansas City.
    9. Tianyuan Luo & Genti Kostandini & Jeffrey L. Jordan, 2023. "Stringent immigration enforcement and the farm sector: Evidence from E‐Verify adoption across states," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 1211-1232, June.
    10. Lewis, Ethan & Peri, Giovanni, 2015. "Immigration and the Economy of Cities and Regions," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 625-685, Elsevier.
    11. Kuroiwa, Kenichi & Chellattan Veettil, Prakashan & Gupta, Ishika, 2024. "Labor Scarcity and Technology Adoption in Agriculture: Evidence from Rural India during the COVID-19 Pandemic," 2024 Annual Meeting, July 28-30, New Orleans, LA 343851, Agricultural and Applied Economics Association.
    12. Tianyuan Luo & Genti Kostandini, 2022. "Stringent immigration enforcement and responses of the immigrant‐intensive sector: Evidence from E‐Verify adoption in Arizona," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(4), pages 1411-1434, August.
    13. Braun, Sebastian Till & Weber, Henning, 2021. "How do regional labor markets adjust to immigration? A dynamic analysis for post-war Germany," Journal of International Economics, Elsevier, vol. 129(C).
    14. Ifft, Jennifer & Jodlowski, Margaret, 2022. "Is ICE freezing US agriculture? Farm-level adjustment to increased local immigration enforcement," Labour Economics, Elsevier, vol. 78(C).
    15. 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.
    16. Pandey, Manish & Ray Chaudhuri, Amrita, 2017. "Immigration-induced effects of changes in size and skill distribution of the labor force on wages in the U.S," Journal of Macroeconomics, Elsevier, vol. 52(C), pages 118-134.
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    More about this item

    Keywords

    Output mix; Immigration; Technology choice;
    All these keywords.

    JEL classification:

    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • N51 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: Pre-1913

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