The Employment Effects of Mexican Repatriations: Evidence from the 1930's

45 Pages Posted: 2 Oct 2017

See all articles by Jongkwan Lee

Jongkwan Lee

Korea Development Institute

Giovanni Peri

University of California, Davis - Department of Economics

Vasil Yasenov

Stanford Immigration Policy Lab; IZA

Date Written: September 2017

Abstract

During the period 1929-34 a campaign forcing the repatriation of Mexicans and Mexican Americans was carried out in the U.S. by states and local authorities. The claim of politicians at the time was that repatriations would reduce local unemployment and give jobs to Americans, alleviating the local effects of the Great Depression. This paper uses this episode to examine the consequences of Mexican repatriations on labor market outcomes of natives. Analyzing 893 cities using full count decennial Census data in the period 1930-40, we find that repatriation of Mexicans was associated with small decreases in native employment and increases in native unemployment. These results are robust to the inclusion of many controls. We then apply an instrumental variable strategy based on the differential size of Mexican communities in 1930, as well as a matching method, to estimate a causal "average treatment effect." Confirming the OLS regressions, the causal estimates do not support the claim that repatriations had any expansionary effects on native employment, but suggest instead that they had no effect on, or possibly depressed, their employment and wages.

Suggested Citation

Lee, Jongkwan and Peri, Giovanni and Yasenov, Vasil, The Employment Effects of Mexican Repatriations: Evidence from the 1930's (September 2017). NBER Working Paper No. w23885. Available at SSRN: https://ssrn.com/abstract=3046354

Jongkwan Lee (Contact Author)

Korea Development Institute ( email )

263 Namsejong-ro
Sejong, 30149
Korea, Republic of (South Korea)

Giovanni Peri

University of California, Davis - Department of Economics ( email )

One Shields Drive
Davis, CA 95616-8578
United States
530-752-3033 (Phone)
530-752-9382 (Fax)

Vasil Yasenov

Stanford Immigration Policy Lab

30 Alta Road
Stanford, CA 94305
United States

IZA ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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