Social Sciences History Seminar

Abstract: We study the local labor market impact of the Quota Acts of 1921 and 1924 which severely restricted migration to the United States from Europe. Most prior work in economics focuses on the impact of such policies on native workers' outcomes. We focus on the effect of immigration restrictions on previously arrived immigrants. We argue that workers in this group are likely closer substitutes for the restricted incoming workers. While earlier work has found that the Quota Acts did not affect native workers' wages, we do find evidence of substitutability: previous cohorts of immigrants benefit from the new restrictions and this effect is concentrated amongst the younger, newer immigrants and those from newer sending countries in southern and eastern Europe. We also consider the role of geographic mobility in labor market adjustment to this shock. Finally, we are also interested in the role of "immigrant niche" occupations and social networks on the effect of this shock.