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Mass Migration and Technological Change

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  • Andersson, David
  • Karadja, Mounir
  • Prawitz, Erik

    (Research Institute of Industrial Economics)

Abstract

This paper studies the effect of emigration on technological change in sending locations after one of the largest migration events in human history, the mass migration from Europe to the United States in the 19th century. To establish causality, we adoptan instrumental variable strategy that combines local growing-season frost shocks with proximity to emigration ports. Using detailed data on patents, we find that emigration led to an increase in innovative activity in sending localities. Using data on capital and labor inputs in agriculture and industry, we find evidence of an increased capital intensity related to new technologies in both sectors. We argue that these results are consistent with theories of induced (labor-saving) innovation due to high labor costs following emigration.

Suggested Citation

  • Andersson, David & Karadja, Mounir & Prawitz, Erik, 2020. "Mass Migration and Technological Change," SocArXiv 74ub8_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:74ub8_v1
    DOI: 10.31219/osf.io/74ub8_v1
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