Labor Supply and Directed Technical Change: Evidence from the Abrogation of the Bracero Program in 1964

64 Pages Posted: 10 Nov 2018 Last revised: 28 May 2020

See all articles by Shmuel San

Shmuel San

New York University (NYU) - Department of Economics

Date Written: May 27, 2020

Abstract

In 1964, around 11% of agricultural workers in America were prevented from entering the labor force. Using a text-search algorithm allocating patents to crops, I show that a negative labor-supply shock induced a sharp increase in innovation in technologies related to more affected crops. The effect is stronger for technology related to labor-intensive production tasks.

Keywords: Directed Technical Change, Labor Supply, Induced Innovation, Immigration Restrictions, Bracero

JEL Classification: J08, F22, O31, O33

Suggested Citation

San, Shmuel, Labor Supply and Directed Technical Change: Evidence from the Abrogation of the Bracero Program in 1964 (May 27, 2020). Available at SSRN: https://ssrn.com/abstract=3268969 or http://dx.doi.org/10.2139/ssrn.3268969

Shmuel San (Contact Author)

New York University (NYU) - Department of Economics ( email )

19 West 4th Street
New York, NY 10012
United States

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