Abstract
We study the role of European Immigration on US innovation and growth from 1880 and 1920. To measure migrants’ role for the innovation process, we link, at the individual level, the Population Census, the universe of patents, and millions of historical immigration records. Using these data, we show that migrants fostered US growth both through the provision of innate innovative skills and by settling in urban innovation hubs. To quantify the importance of international migrants, we construct a new spatial model of economic growth, where innovation relies on the stock of local knowledge and migrants endogenously sort across space. International migration during 1880-1920 increased US income per capita by 5% percent in 1920. Immigrants’ innate skills and their choice to settle in urban areas where they could build on existing knowledge contributed equally, each accounting for about 40% of these gains.
Local Organizer: Giovanni Angelini