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
Date Written: May 27, 2020
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: Suggested Citation