Migrant self-selection in the presence of random shocks. Evidence from the Panic of 1907

David Escamilla-Guerrero and Moramay Lopez-Alonso

No _179, Oxford Economic and Social History Working Papers from University of Oxford, Department of Economics

Abstract: We evaluate the responsiveness of migrant self-selection to short-run changes in the economic environment. Using novel historical micro data, we estimate the initial selectivity of Mexican migration (1906-08) and focus on labor institutions as short-run adjustment channels of self-selection. We find that the first Mexican migrants were positively self-selected on the basis of height—a proxy for physical productivity of labor. Additionally, the US financial crisis of 1907 significantly modified self-selection. Shifts in migrant self-selection during and after the crisis were influenced by the enganche, an institution that reduced migration costs, but only for the “best†Mexicans during “good†economic times.

Keywords: labor migration; migrant self-selection; Panic of 1907; Mexico (search for similar items in EconPapers)
JEL-codes: F22 J61 N36 O15 (search for similar items in EconPapers)
Date: 2020-04-27
New Economics Papers: this item is included in nep-gen, nep-his, nep-int, nep-lab and nep-mig
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Migrant Self-Selection and Random Shocks: Evidence from the Panic of 1907 (2023)
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