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


Abstract: The era of mass immigration into the US ended with the onset of WWI and the passage of restrictive immigration laws in the 1920s. To understand the impact of this disruption to immigration on low-skilled labor wages, we analyze newly digitized wage data from 1910 through 1929. The laws restricted immigration from certain countries more than others, which affected local labor markets differently. Our findings suggest that industries and regions with more exposure to these restrictions experienced larger reductions in immigration flows, leading to relatively higher wages for low-skilled labor during the 1920s.

JEL Classification: N32; J15; J31; K37; N42; R23;

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: 2024-05

Number: RWP 22-12

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