Source #2Study Notes on The Impact of Skill-Based Immigration Restrictions

The Impact of Skill-Based Immigration Restrictions: The Chinese Exclusion Act of 1882

Authors and Source

  • Author: Joyce J. Chen, The Ohio State University

  • Source: Journal of Human Capital, Vol. 9, No. 3 (Fall 2015), pp. 298-328

  • Published by: University of Chicago Press

  • Stable URL: Link to article

Abstract

This paper examines the impact of skill-based immigration restrictions, specifically through the lens of the Chinese Exclusion Act of 1882, finding that the restrictions had significant implications on the occupational standing of Chinese immigrants. It discusses the heterogeneity in outcomes across different groups, particularly focusing on the intergenerational transmission of skills from immigrants to their children.

Introduction

  • The Chinese Exclusion Act serves as a crucial natural experiment for understanding skill-based immigration restrictions.

  • Historical context:

    • Page Law of 1875: First directed immigration restriction in U.S. history, targeting specific nationalities and establishing precedents for federal immigration regulation.

    • Chinese Exclusion Act of 1882: Prohibited immigration of all Chinese laborers (skilled or unskilled) and marked a shift towards racially motivated immigration policy. Special exemptions included merchants, students, teachers, and certain officials.

Historical Context

A. Chinese Immigration Prior to 1854

  • Fewer than 50 immigrants annually until 1854, when numbers spiked to 13,100 due to the California Gold Rush.

  • Post-1854 period stabilized at 3,000-7,000 per year until the mid-1860s.

B. Anti-Chinese Sentiment and Legislative Response

  • Anti-Chinese sentiment surged leading to multiple restrictive laws post-Gold Rush, especially with the completion of the transcontinental railroad.

  • The peak of Chinese immigration was curtailed following the establishment of the Exclusion Act, resulting in drastic declines in immigration numbers.

    • Decline Post-Act: From 39,579 immigrants in 1882 to 8,031 and 279 in 1883 and 1884, respectively.

C. Exempted Categories

  • Categories exempted from the Act included diplomats, teachers, students, and merchants.

  • Immigrants required documentation and faced scrutiny at immigration points like Angel Island.

Empirical Methodology

A. Theoretical Framework

  • Utilizes a Roy model to analyze the decision process of immigrants based on observed ($s$) and unobserved ($k$) skills, where wages ($w$) are defined as: w0 = m0 s + ext{ε}0 k w1 = m1 s + ext{ε}1 k

    • Where $m$ and ε are country-specific earnings of skills, and $I = 1$ if migration is worthwhile.

B. Control Group and Comparative Analysis

  • Japanese immigrants served as a comparison group to discern immigration trends and selectivity changes before and after restrictions.

C. Data Sources

  • Microdata from U.S. decennial censuses (1860-1930) were used to analyze occupational outcomes and the impact of skill-based restrictions on immigrant populations.

Main Findings

A. Impact on Occupational Outcomes

  • Restricted Chinese immigrants showed a decrease in occupational standing compared to pre-exclusion Chinese immigrants and even relative to Japanese immigrants.

  • The findings suggested that skill-based restrictions were not effective in raising the occupational standing of Chinese immigrants.

B. Intergenerational Transmission of Skill

  • Despite lower average skills among restricted Chinese immigrants, their offspring demonstrated higher levels of human capital compared to children of unrestricted Japanese immigrants.

    • This effect indicates a strong investment in the human capital of children by Chinese immigrant parents despite their own lower occupational standings.

C. Differences in Outcomes Between Chinese and Japanese Immigrants

  • The outcomes for second-generation Chinese immigrants showed better occupational scores than those of second-generation Japanese immigrants, reflecting greater parental investment in education and skill development among Chinese.

Conclusion

  • The study reveals that the impact of immigration restrictions is nuanced and complex, reflecting deeply embedded societal and economic factors.

  • The contrasting experiences of Chinese and Japanese immigrant groups highlight the importance of considering both observed and unobserved skills in understanding the impacts of policy.

References

  • Chen, Joyce J. (2015). The Impact of Skill-Based Immigration Restrictions: The Chinese Exclusion Act of 1882. Journal of Human Capital, 9(3), 298-328.

  • Various empirical studies and historical analyses which were cited throughout the paper provide depth and contextual understanding to the argument presented.