DP13998 Immigration, Internal Migration, and Technology Adoption

Author(s): Joan Monras
Publication Date: September 2019
Keyword(s): International and internal migration, Technology adoption
JEL(s): F22, J20, J30
Programme Areas: Labour Economics, International Trade and Regional Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=13998

An abundance of a certain factor may shape technology adoption. Traditional approaches have used proxies of local technology adoption in combination with immigrant-driven exogenous changes in the factor mix to document this relationship. In this paper, I back-out implied technology adoption from long-run internal migration patterns in Miami relative to a number of controls groups following the Mariel Boatlift. The identifying assumption is that technology adoption explains the part of the wage recovery that cannot be explained by internal migration. Model-based estimates suggest that local technology adoption explains 60 percent of the relative wage recovery in Miami.