Returns to skills, skill premium and occupational skill-sectors analysis comparing Italian immigrants to the US and Argentina during the Age of Mass Migration

Jackson, Bella (2024) Returns to skills, skill premium and occupational skill-sectors analysis comparing Italian immigrants to the US and Argentina during the Age of Mass Migration. Economic History Student Working Papers (29). Department of Economic History, The London School of Economics and Political Science, London, UK.

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Abstract

The Age of Mass Migration saw unprecedented flows of Italian migrants to the US and Argentina, mostly directed to NYC and Buenos Aires. Droller, Fizsbein and Pérez claim that Italians in Argentina were more skilled than those in America. If so, why did higher-skilled Italians move to Argentina over America when real wages were higher in America than Argentina? I assemble datasets using Argentine and American censuses and wage data to compare literacy rates and occupational compositions of Italian immigrants between these countries and cities. I create a regression model to contrast the returns to skills between Italians in Argentina and America and I determine skill premia for both Italian cohorts using income data. I find that Italian immigrants in Argentina were more skilled than Italian immigrants in America, due to higher literacy rates and a higher-skilled occupational composition. I argue that the skill scarcity in Argentina, and higher returns to skills and skill premia than America, explains the greater appeal of Argentina for skilled Italian migrants. I stress the importance of considering returns to skills and skill premia when studying migratory flows between destination countries.

Item Type:	Monograph (Working Paper)
Official URL:	https://www.lse.ac.uk/Economic-History/Working-Pap...
Additional Information:	© 2024 The Author
Divisions:	LSE
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor J Political Science > JV Colonies and colonization. Emigration and immigration. International migration
JEL classification:	J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J61 - Geographic Labor Mobility; Immigrant Workers
Date Deposited:	21 Oct 2024 16:00
Last Modified:	22 Oct 2024 23:18
URI:	http://eprints.lse.ac.uk/id/eprint/125829

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