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The Effects of Immigration Quotas on Wages, the Great Black Migration, and Industrial Development

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  • Xie, Bin

    (Jinan University)

Abstract

This paper exploits the exogenous and differential immigrant supply shocks caused by the immigration quota system in the 1920s to identify the causal effects of the immigration restriction on the US manufacturing wages, the Great Migration, and industrial production between 1920 and 1930. I find that the immigration restriction significantly increased manufacturing wages and encouraged the southern black population to migrate to the North. I also find that the decline in the immigrant supply constrained the growth of the scale of manufacturing production and discouraged technology adoption of electrification.

Suggested Citation

  • 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).
    • Handle: RePEc:iza:izadps:dp11214
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    Cited by:

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    3. Kirk Doran & Chungeun Yoon, 2019. "Immigration and Invention: Does Language Matter?," NBER Chapters, in: The Roles of Immigrants and Foreign Students in US Science, Innovation, and Entrepreneurship, pages 123-145, National Bureau of Economic Research, Inc.
    4. Ager, Philipp & Abramitzky, Ran & Boustan, Leah & Cohen, Elior David & Hansen, Casper Worm, 2019. "The Effects of Immigration on the Economy: Lessons from the 1920s Border Closure," CEPR Discussion Papers 14165, C.E.P.R. Discussion Papers.
    5. Chen, Shuo & Xie, Bin, 2020. "Institutional Discrimination and Assimilation: Evidence from the Chinese Exclusion Act of 1882," IZA Discussion Papers 13647, Institute of Labor Economics (IZA).
    6. Andreas Vortisch, 2023. "The impact of the Johnson–Reed Act on Filipino labor market outcomes," French Stata Users' Group Meetings 2023 12, Stata Users Group.
    7. Ager, Philipp & Hansen, Casper Worm, 2017. "Closing Heaven's Door: Evidence from the 1920s U.S. Immigration Quota Acts," Discussion Papers on Economics 11/2017, University of Southern Denmark, Department of Economics.
    8. Philipp Ager & James J. Feigenbaum & Casper Worm Hansen & Hui Ren Tan, 2020. "How the Other Half Died: Immigration and Mortality in US Cities," NBER Working Papers 27480, National Bureau of Economic Research, Inc.
    9. Kevin Hjortshøj O'Rourke, 2018. "Economic history and contemporary challenges to globalization," Oxford Economic and Social History Working Papers _167, University of Oxford, Department of Economics.
    10. Timothy J Hatton & Zachary Ward, 2018. "International Migration in the Atlantic Economy 1850 - 1940," CEH Discussion Papers 02, Centre for Economic History, Research School of Economics, Australian National University.

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    More about this item

    Keywords

    immigration restriction; Great Black Migration; industrial development;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • K37 - Law and Economics - - Other Substantive Areas of Law - - - Immigration Law
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

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