The Effect of Internal Migration on Local Labor Markets: American Cities During the Great Depression

Working Paper: NBER ID: w13276

Authors: Leah Platt Boustan; Price V. Fishback; Shawn E. Kantor

Abstract: During the Great Depression, as today, migrants were accused of taking jobs and crowding relief rolls. At the time, protest concerned internal migrants rather than the foreign born. We investigate the effect of net migration on local labor markets, instrumenting for migrant flows to a destination with extreme weather events and variation in New Deal programs in typical sending areas. Migration had little effect on the hourly earnings of existing residents. Instead, migration prompted some residents to move away and others to lose weeks of work and/or access to relief jobs. Given the period's high unemployment, these lost work opportunities were costly to existing residents.

Keywords: internal migration; local labor markets; Great Depression; economic outcomes; New Deal

JEL Codes: J61; N32; R23


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
weeks worked (J22)hourly earnings of existing residents (J31)
internal migration (F22)hourly earnings of existing residents (J31)
internal migration (F22)weeks worked (J22)
internal migration (F22)employment (J68)
internal migration (F22)work opportunities (J29)

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