Abstract

Between 1880 and 1920 millions of international migrants settled in the US. Their allocation within the US, however, was strikingly unequal with almost 70% of migrants living in cities. Using a novel dataset, where we link, at the individual level, the population census, the universe of patents, and millions of historical immigration records, we argue that this urban bias of immigrants played a key role for the process of US innovation and growth. Like today, cities were innovation hubs and international migrants benefited from and contributed to the local knowledge stock. To quantify the importance of this channel, we construct a new spatial growth model, where knowledge spillovers are local and individuals sort across space. International migration during the age of mass migration increased US income per capita by 6% by 1920. Immigrants' urban bias accounts for almost half of these gains. 

For further information please contact sara.picciallo@unibocconi.it