| By: |
Stephen J Terry (BU - Boston University [Boston], NBER - National Bureau of Economic Research [New York] - NBER - The National Bureau of Economic Research);
Thomas Chaney (USC - University of Southern California, ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPR - Center for Economic Policy Research - CEPR);
Konrad B Burchardi (Stockholm University);
Lisa Tarquinio (UWO - University of Western Ontario);
Tarek A Hassan (BU - Boston University [Boston], NBER - National Bureau of Economic Research [New York] - NBER - The National Bureau of Economic Research, CEPR - Center for Economic Policy Research - CEPR) |
| Abstract: |
We show a causal impact of immigration on innovation and growth in US
counties. To identify the causal impact of immigration, we use 130 years of
detailed data on migrations from foreign countries to US counties to isolate
quasi-random variation in the ancestry composition of US counties; interacting
this plausibly exogenous variation in ancestry composition with the recent
inflows of migrants from different origins, we predict the total number of
migrants flowing into each US county in recent decades. We show immigration
has a positive causal impact on innovation, measured as patenting of local
firms, and on economic growth, measured as real income growth for native
workers. We interpret those results through the lens of a quantitative model
of endogenous growth and migrations. A structural estimation of this model
targeting the well identified causal impact of migration on innovation
suggests the large inflow of foreign migrants into the US since 1965 may have
contributed to an additional 8% growth in innovation and 5% growth in wages. |
| Keywords: |
Migrations, Innovation, Patents, Endogenous growth, Dynamism |
| Date: |
2022–11–24 |
| URL: |
http://d.repec.org/n?u=RePEc:hal:spmain:hal-03869993&r=ipr |