IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/125829.html
   My bibliography  Save this paper

Returns to skills, skill premium and occupational skill-sectors analysis comparing Italian immigrants to the US and Argentina during the Age of Mass Migration

Author

Listed:
  • Jackson, Bella

Abstract

The Age of Mass Migration saw unprecedented flows of Italian migrants to the US and Argentina, mostly directed to NYC and Buenos Aires. Droller, Fizsbein and Pérez claim that Italians in Argentina were more skilled than those in America. If so, why did higher-skilled Italians move to Argentina over America when real wages were higher in America than Argentina? I assemble datasets using Argentine and American censuses and wage data to compare literacy rates and occupational compositions of Italian immigrants between these countries and cities. I create a regression model to contrast the returns to skills between Italians in Argentina and America and I determine skill premia for both Italian cohorts using income data. I find that Italian immigrants in Argentina were more skilled than Italian immigrants in America, due to higher literacy rates and a higher-skilled occupational composition. I argue that the skill scarcity in Argentina, and higher returns to skills and skill premia than America, explains the greater appeal of Argentina for skilled Italian migrants. I stress the importance of considering returns to skills and skill premia when studying migratory flows between destination countries.

Suggested Citation

  • Jackson, Bella, 2024. "Returns to skills, skill premium and occupational skill-sectors analysis comparing Italian immigrants to the US and Argentina during the Age of Mass Migration," LSE Research Online Documents on Economics 125829, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:125829
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/125829/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Williamson Jeffrey G., 1995. "The Evolution of Global Labor Markets since 1830: Background Evidence and Hypotheses," Explorations in Economic History, Elsevier, vol. 32(2), pages 141-196, April.
    2. A. G. Ford, 1956. "Argentina And The Baring Crisis Of 1890," Oxford Economic Papers, Oxford University Press, vol. 8(2), pages 127-160.
    3. Leticia Arroyo Abad & Pablo Astorga Junquera, 2017. "Latin American earnings inequality in the long run," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 11(3), pages 349-374, September.
    4. Filipe Campante & Edward L. Glaeser, 2018. "Yet another tale of two cities: Buenos Aires and Chicago," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 27(1), pages 1-33, December.
    5. Leticia Arroyo Abad & Blanca Sánchez-Alonso, 2018. "A city of trades: Spanish and Italian immigrants in late-nineteenth-century Buenos Aires, Argentina," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 12(2), pages 343-376, May.
    6. Mitchener, Kris James & Weidenmier, Marc D., 2008. "The Baring Crisis and the Great Latin American Meltdown of the 1890s," The Journal of Economic History, Cambridge University Press, vol. 68(2), pages 462-500, June.
    7. Takahashi, Shuhei & Yamada, Ken, 2022. "Understanding international differences in the skill premium: The role of capital taxes and transfers," Journal of Economic Dynamics and Control, Elsevier, vol. 143(C).
    8. Leticia Arroyo Abad & Noel Maurer & Blanca Sánchez‐Alonso, 2021. "Paesani versus paisanos: the relative failure of Spanish immigrants in Buenos Aires during the age of mass migration," Economic History Review, Economic History Society, vol. 74(2), pages 546-567, May.
    9. Spitzer, Yannay & Zimran, Ariell, 2018. "Migrant self-selection: Anthropometric evidence from the mass migration of Italians to the United States, 1907–1925," Journal of Development Economics, Elsevier, vol. 134(C), pages 226-247.
    10. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    11. Blanca Sánchez‐Alonso, 2019. "The age of mass migration in Latin America," Economic History Review, Economic History Society, vol. 72(1), pages 3-31, February.
    12. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
    13. Dustmann, Christian, 2003. "Return migration, wage differentials, and the optimal migration duration," European Economic Review, Elsevier, vol. 47(2), pages 353-369, April.
    14. Jason Long & Joseph Ferrie, 2013. "Intergenerational Occupational Mobility in Great Britain and the United States since 1850," American Economic Review, American Economic Association, vol. 103(4), pages 1109-1137, June.
    15. de Oliveira, Guilherme & Guerriero, Carmine, 2018. "Extractive states: The case of the Italian unification," International Review of Law and Economics, Elsevier, vol. 56(C), pages 142-159.
    16. Roberto Basile & Carlo Ciccarelli & Peter Groote, 2022. "The legacy of literacy: evidence from Italian regions," Regional Studies, Taylor & Francis Journals, vol. 56(5), pages 794-807, May.
    17. Bertola, Luis & Ocampo, Jose Antonio, 2012. "The Economic Development of Latin America since Independence," OUP Catalogue, Oxford University Press, number 9780199662142, Decembrie.
    18. Hatton, Timothy J. & Williamson, Jeffrey G., 1998. "The Age of Mass Migration: Causes and Economic Impact," OUP Catalogue, Oxford University Press, number 9780195116519, Decembrie.
    19. A. G. Ford, 1958. "Flexible Exchange Rates And Argentina, 1885–1900," Oxford Economic Papers, Oxford University Press, vol. 10(3), pages 316-338.
    20. Robert A. Margo, 2002. "The North-South Wage Gap, Before and After the Civil War," NBER Working Papers 8778, National Bureau of Economic Research, Inc.
    21. Jos� Antonio Ocampo & Juliana Vallejo, 2012. "Economic Growth, Equity and Human Development in Latin America," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 13(1), pages 107-133, February.
    22. Milanovic, Branko, 2024. "The three eras of global inequality, 1820–2020 with the focus on the past thirty years," World Development, Elsevier, vol. 177(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Blanca Sánchez‐Alonso, 2019. "The age of mass migration in Latin America," Economic History Review, Economic History Society, vol. 72(1), pages 3-31, February.
    2. Collins, William J. & Zimran, Ariell, 2019. "The economic assimilation of Irish Famine migrants to the United States," Explorations in Economic History, Elsevier, vol. 74(C).
    3. 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).
    4. repec:ehl:wpaper:117260 is not listed on IDEAS
    5. Fernández, Martín & Tortorici, Gaspare, 2024. "Male and female self-selection during the Portuguese mass migration, 1885–1930," Explorations in Economic History, Elsevier, vol. 92(C).
    6. Aksoy, Cevat Giray & Poutvaara, Panu, 2021. "Refugees' and irregular migrants’ self-selection into Europe," Journal of Development Economics, Elsevier, vol. 152(C).
    7. Escamilla Guerrero, David & Lepistö, Miko & Minns, Chris, 2022. "Explaining gender differences in migrant sorting: evidence from Canada-US migration," LSE Research Online Documents on Economics 117260, London School of Economics and Political Science, LSE Library.
    8. Matteo Gomellini & Cormac Ó Gráda, 2019. "Brain Drain and Brain Gain in Italy and Ireland in the Age of Mass Migration," Palgrave Studies in Economic History, in: David Mitch & Gabriele Cappelli (ed.), Globalization and the Rise of Mass Education, chapter 0, pages 163-191, Palgrave Macmillan.
    9. Gordon Hanson & Chen Liu & Craig McIntosh, 2017. "The Rise and Fall of U.S. Low-Skilled Immigration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 48(1 (Spring), pages 83-168.
    10. Michael A. Clemens, 2022. "Migration on the Rise, a Paradigm in Decline: The Last Half-Century of Global Mobility," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 257-261, May.
    11. Javier Rodríguez Weber, 2018. "Alta desigualdad en América Latina: desde cuándo y por qué," Documentos de trabajo 51, Programa de Historia Económica, FCS, Udelar.
    12. Amelie F. Constant, 2019. "Return, Circular, and Onward Migration Decisions in a Knowledge Society," CESifo Working Paper Series 7913, CESifo.
    13. Santiago Pérez, 2019. "Southern (American) Hospitality: Italians in Argentina and the US during the Age of Mass Migration," NBER Working Papers 26127, National Bureau of Economic Research, Inc.
    14. Leticia Arroyo Abad & Pablo Astorga Junquera, 2017. "Latin American earnings inequality in the long run," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 11(3), pages 349-374, September.
    15. Collins, William J. & Wanamaker, Marianne H., 2015. "The Great Migration in Black and White: New Evidence on the Selection and Sorting of Southern Migrants," The Journal of Economic History, Cambridge University Press, vol. 75(4), pages 947-992, December.
    16. 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.
    17. Baten, Joerg & Llorca-Jaña, Manuel, 2021. "Inequality, low-intensity immigration and human capital formation in the regions of Chile, 1820-1939," Economics & Human Biology, Elsevier, vol. 43(C).
    18. Martin Dribe & Björn Eriksson & Jonas Helgertz, 2023. "From Sweden to America: migrant selection in the transatlantic migration, 1890–1910," European Review of Economic History, European Historical Economics Society, vol. 27(1), pages 24-44.
    19. Ran Abramitzky & Leah Platt Boustan & Katherine Eriksson, 2012. "Europe's Tired, Poor, Huddled Masses: Self-Selection and Economic Outcomes in the Age of Mass Migration," American Economic Review, American Economic Association, vol. 102(5), pages 1832-1856, August.
    20. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    21. Ward, Zachary, 2017. "Birds of passage: Return migration, self-selection and immigration quotas," Explorations in Economic History, Elsevier, vol. 64(C), pages 37-52.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehl:lserod:125829. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.