Working Paper: NBER ID: w26399
Authors: Jongkwan Lee; Giovanni Peri; Vasil Yasenov
Abstract: We examine the labor market consequences of an extensive campaign repatriating around 400,000 Mexicans in 1929-34. To identify a causal effect, we instrument county level repatriations with the existence of a railway line to Mexico interacted with the size of the Mexican communities in 1910. Using individual linked data we find that Mexican repatriations reduced employment of native incumbent workers and resulted in their occupational downgrading. However, using a repeated cross section of county level data, we find attenuated and non-significant employment effects and amplified wage downgrading. We show that this is due to selective in- and out-migration of natives.
Keywords: Mexican repatriations; labor market; employment; occupational downgrading
JEL Codes: J15; J61; N22
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Mexican repatriations (F24) | native employment (J15) |
| Mexican repatriations (F24) | native occupational wages (J39) |
| Mexican repatriations (F24) | selective inflow of low-skilled natives (J69) |
| selective inflow of low-skilled natives (J69) | employment effect (J68) |
| selective inflow of low-skilled natives (J69) | wage downgrading effect (J31) |