The Effects of Immigration on the Economy: Lessons from the 1920s Border Closure

@article{Abramitzky2019TheEO,
  title={The Effects of Immigration on the Economy: Lessons from the 1920s Border Closure},
  author={Ran Abramitzky and Philipp Ager and Leah Platt Boustan and Elior Cohen and Casper Worm Hansen},
  journal={CEPR Discussion Paper Series},
  year={2019}
}
In the 1920s, the United States substantially reduced immigrant entry by imposing country-specific quotas. We compare local labor markets with more or less exposure to the national quotas due to differences in initial immigrant settlement. A puzzle emerges: the earnings of existing US-born workers declined after the border closure, despite the loss of immigrant labor supply. We find that more skilled US-born workers – along with unrestricted immigrants from Mexico and Canada – moved into… 

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