Journal
AMERICAN ECONOMIC REVIEW
Volume 108, Issue 6, Pages 1468-1487Publisher
AMER ECONOMIC ASSOC
DOI: 10.1257/aer.20170765
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Funding
- Open Philanthropy Foundation
- Eunice Kennedy Shriver National Institute of Child Health and Human Development of the National Institutes of Health [P2CHD047879]
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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.
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