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Immigration Restrictions and the Wages of Low-Skilled Labor: Evidence from the 1920s


Abstract: This paper examines how the U.S. immigration restrictions of the 1920s affected the wages of low-skilled workers using newly digitized annual wage data from 1910 to 1930. Exploiting variation across local labor markets, we find that wages for low-skilled workers rose faster in areas more affected by the restrictions. These wage effects emerged early in the 1920s and persisted throughout the decade across manufacturing, construction, and agricultural sectors. Our findings help explain previously documented internal migration patterns and demonstrate how reduced immigration affected labor markets through both direct supply effects and subsequent adjustment mechanisms.

JEL Classification: J61; N31; N32;

https://doi.org/10.18651/RWP2022-12

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Provider: Federal Reserve Bank of Kansas City

Part of Series: Research Working Paper

Publication Date: 2025-02-25

Number: RWP 22-12

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