Immigration and trade: Evidence from the 1920s Quota Acts

Thomas Lebesmuehlbacher () and Alex Palmer ()
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Thomas Lebesmuehlbacher: Xavier University
Alex Palmer: Xavier University

Economics Bulletin, 2022, vol. 42, issue 3, 1349 - 1369

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.

Keywords: Trade; Migration; 1920 Quota (search for similar items in EconPapers)
JEL-codes: F1 F2 (search for similar items in EconPapers)
Date: 2022-09-30
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