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American Economic Review Vol. 108 No. 6 2018

Immigration Restrictions as Active Labor Market Policy: Evidence from the Mexican Bracero Exclusion

Michael A. Clemens1; Ethan Lewis2; Hannah Postel3

1 Center for Global Development, 2055 L Street NW, 5th Floor, Washington, DC 20036, and IZA (email: ) · 2 Department of Economics, Dartmouth College, 304  Rockefeller Hall, Hanover, NH 03755, and NBER (email: ) · 3 Office of Population Research, Princeton University, Wallace Hall 2nd Floor, Princeton, NJ 08540 (email: )

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Abstract

An important class of active labor market policy has received little impact evaluation: immigration barriers intended to raise wages and employment by shrinking labor supply. Theories of endogenous technical advance raise the possibility of limited or even perverse impact. We study a natural policy experiment: the exclusion of almost half a million Mexican bracero farm workers from the United States to improve farm labor market conditions. With novel labor market data we measure state-level exposure to exclusion, and model the absent changes in technology or crop mix. We fail to reject zero labor market impact, inconsistent with this model.

DOI
10.1257/aer.20170765
Volume
108
Issue
6
Pages
1468-1487
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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