Korea Development Institute.
263 Namsejong-ro, Sejong 30149,
NBER Working Papers and Publications
|September 2017||The Employment Effects of Mexican Repatriations: Evidence from the 1930's|
with Giovanni Peri, Vasil Yasenov: w23885
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...