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Immigration and trade: Evidence from the 1920s Quota Acts

Author

Listed:
  • Thomas Lebesmuehlbacher

    (Xavier University)

  • Alex M. Palmer

    (Xavier University)

Abstract

During the 1920s, the US implemented a series of migration restrictions, effectively ending mass migration from Europe. We exploit this shock to migration to identify the effect of migration on trade in a Difference-in-Difference model with heterogeneous treatment effects. Our analysis shows that the 1920's quotas lowered US-European migration, especially the migration from Southern and Eastern Europe, with negative effects for US-European trade. We argue that unobserved changes to tariffs after the war are unlikely to drive these results.

Suggested Citation

  • Thomas Lebesmuehlbacher & Alex M. Palmer, 2022. "Immigration and trade: Evidence from the 1920s Quota Acts," Economics Bulletin, AccessEcon, vol. 42(3), pages 1349-1369.
    • Handle: RePEc:ebl:ecbull:eb-22-00051
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    File URL: http://www.accessecon.com/Pubs/EB/2022/Volume42/EB-22-V42-I3-P114.pdf
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    More about this item

    Keywords

    Trade; Migration; 1920 Quota;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F1 - International Economics - - Trade

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