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Thomas Lebesmuehlbacher and Alex M. Palmer
 
''Immigration and trade: Evidence from the 1920s Quota Acts''
( 2022, Vol. 42 No.3 )
 
 
During the 1920s, the US implemented a series of migration restrictions, effectively ending mass migration from Europe. We exploit this shock to migration to identify the effect of migration on trade in a Difference-in-Difference model with heterogeneous treatment effects. Our analysis shows that the 1920's quotas lowered US-European migration, especially the migration from Southern and Eastern Europe, with negative effects for US-European trade. We argue that unobserved changes to tariffs after the war are unlikely to drive these results.
 
 
Keywords: Trade, Migration, 1920 Quota
JEL: F2 - International Factor Movements and International Business: General
F1 - Trade: General
 
Manuscript Received : Jan 21 2022 Manuscript Accepted : Sep 30 2022

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