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Transatlantic wage gaps and the migration decision: Europe–Canada in the 1920s

Author

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  • Alex Armstrong

    (University of Ottawa)

  • Frank D. Lewis

    (Queen’s University)

Abstract

As has been seen in other contexts, workers in similar occupations earned much higher wages in Canada than Europe during the 1920s. This observation and related aspects of immigration are addressed with a life-cycle model of the migration decision. The characteristics of immigrants from five European countries: Ireland, Italy, the Netherlands, Poland, and Sweden, are explored in a way that sheds light not just on those population flows but on the process of immigration generally. We draw on passenger manifests from immigrant ships for information on the individual migrants. Simulations, based partly on the these manifests, reveal that the costs of migration, borrowing constraints, concern for status, and country-specific taste preferences account for key immigrant characteristics, and help explain the large wage differentials that persisted despite Canada’s relatively open immigration policy.

Suggested Citation

  • Alex Armstrong & Frank D. Lewis, 2017. "Transatlantic wage gaps and the migration decision: Europe–Canada in the 1920s," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 11(2), pages 153-182, May.
    • Handle: RePEc:spr:cliomt:v:11:y:2017:i:2:d:10.1007_s11698-016-0141-x
    DOI: 10.1007/s11698-016-0141-x
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    Cited by:

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    2. Gillian C. Hamilton & Ian Keay & Frank D. Lewis, 2017. "Contributions to Canadian economic history: The last 30 years," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1632-1657, December.
    3. Carlo Ciccarelli & Alberto Dalmazzo & Daniela Vuri, 2021. "Home Sweet Home: the Effect of Sugar Protectionism on Emigration in Italy, 1876‐1913," Papers in Regional Science, Wiley Blackwell, vol. 100(4), pages 925-957, August.

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    More about this item

    Keywords

    Immigration; Wage differentials; Borrowing constraints; Status;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-

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