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  • 2021
  • Chapter
  • Oxford Research Encyclopedia of Economics and Finance

The Economic and Political Effects of Immigration: Evidence from the Age of Mass Migration

By: Marco Tabellini
  • Format:Electronic
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Abstract

Between 1850 and 1920, during the Age of Mass Migration, more than 30 million Europeans moved to the United States. European immigrants provided ample supply of cheap labor as well as specific skills and know-how, contributing to American economic growth. These positive effects were not short-lived, but are still evident in the twenty-first century: areas of the U.S. that received more European immigrants during the Age of Mass Migration have higher income per capita, a more educated population, and lower poverty rates. Despite its economic benefits, immigration triggered hostile political reactions, which were driven by cultural differences between immigrants and natives, and culminated in the introduction of country-specific quotas. In contrast with the concerns prevailing at the time, European immigrants eventually assimilated. The process was facilitated by the inflow of 1.5 million African Americans who moved to northern and western cities leaving the rural South, between 1915 and 1930. Black in-migration increased the salience of skin color, as opposed to that of religion and nativity, as a defining feature of in- and out-groups of the society. This reduced the perceived distance between native whites and European immigrants, thereby facilitating the integration of the latter. European immigrants also had long-lasting effects on American ideology. Parts of the country that hosted more immigrants during the Age of Mass Migration have a more liberal ideology and stronger preferences for redistribution well into the twenty-first century. This resulted from the transmission of political ideology from (more left-leaning) immigrants to natives.

Keywords

Age Of Mass Migration; Political Ideology; Political Economy; Assimilation; Immigration; Economics; History; United States

Citation

Tabellini, Marco. "The Economic and Political Effects of Immigration: Evidence from the Age of Mass Migration." In Oxford Research Encyclopedia of Economics and Finance, edited by Jonathan H. Hamilton. Oxford University Press, 2021. Electronic.
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About The Author

Marco E. Tabellini

Business, Government and the International Economy
→More Publications

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  • Extractive Taxation and the French Revolution By: Tommaso Giommoni, Gabriel Loumeau and Marco Tabellini
  • South Africa: Growth and Inequality By: Marco Tabellini, Marlous van Waijenburg and Maisie Wiltshire-Gordon
  • Population Aging in the U.S.: Is America Ready for the 'Silver Tsunami?' By: Marco Tabellini
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