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Project Citation: 

San, Shmuel. Data and code for “Labor Supply and Directed Technical Change: Evidence from the Termination of the Bracero Program in 1964.” Nashville, TN: American Economic Association [publisher], 2022. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2022-12-08. https://doi.org/10.3886/E148101V1

Project Description

Summary:  View help for Summary This paper studies the impact of labor supply on the creation of new technology, exploiting a large exogenous shock to the US agricultural labor supply caused by the termination of the Bracero agreements between the US and Mexico at the end of 1964. Using a text-search algorithm allocating patents to crops, I show 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. Farm-value dynamics indicate that, despite the positive technology reaction, the policy change was undesirable for farm owners.

Scope of Project

Subject Terms:  View help for Subject Terms Directed Technical Change; Labor Supply; Induced Innovation; Automation; Immigration Restrictions; Bracero
JEL Classification:  View help for JEL Classification
      F22 International Migration
      J08 Labor Economics Policies
      O31 Innovation and Invention: Processes and Incentives
      O33 Technological Change: Choices and Consequences; Diffusion Processes
Geographic Coverage:  View help for Geographic Coverage United States
Time Period(s):  View help for Time Period(s) 1948 – 1985

Methodology

Unit(s) of Observation:  View help for Unit(s) of Observation Year and crop
Geographic Unit:  View help for Geographic Unit County

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