Study Notes on Japanese Immigrant Economic Achievement and Return Migration

Author: Masao Suzuki
Source: The Journal of Economic History, Volume 55, Number 4, December 1995, Pages 889-901
Published by: Cambridge University Press for the Economic History Association
Stable URL: JSTOR Link
Context: The article examines the economic achievements of Japanese immigrants in the United States during the 1920s and the implications of return migration.

The notion of Japanese Americans as a success story emerged in the 1960s amidst the Civil Rights movement. They were often labeled as "model minorities," having supposedly overcome racial discrimination independently.
The paper discusses the contentious debate surrounding the economic achievements of Asian Americans—specifically Japanese immigrants.

William Petersen: Paralleled Japanese American success to Horatio Alger heroes.
Robert Higgs: Argued that Japanese immigrants attained a solid middle-class economic position before World War II, attributing this to competitive market forces.
Thomas Sowell: Suggested that cultural factors play a significant role in the economic success of ethnic groups.
William Darity Jr.: Pointed out that the economic success of Japanese Americans could be linked to their middle-class backgrounds prior to immigration.

The immigration period from 1920 to 1940 saw a significant net emigration from the United States by Japanese immigrants, approximately one-third of the recorded population in 1920.
Return migration was predominantly not class-neutral, with a high outflow from lower-skilled occupations, including farm laborers, nonfarm laborers, and domestic servants.

Focus: The impact of selective return migration on economic achievement during 1920-1930, utilizing data on occupational changes.
Limitations of the Data: Data is constrained to certain census years and immigration records.

Middle Class: Farmers, business people, professionals (self-employed, ownership of capital).
Unskilled Workers: Farm laborers, domestic workers.
Intermediate: Nondomestic service, clerical, and sales workers.

Statistical data illustrates a shift in the occupational status of Japanese immigrants.
- In 1920: 21% in middle-class occupations; 58% in unskilled labor.
- In 1930: 29% in middle-class occupations; 47% in unskilled labor.
Despite this improvement, workers in middle-class occupations remained outnumbered by unskilled laborers.

Legal discrimination against Japanese immigrants increased in the 1920s (e.g., alien land laws, Supreme Court rulings on naturalization).
The growth in high occupational groups coincided with rising legal restrictions, raising questions about the reasons behind the economic gains despite these obstacles.

Occupational Data (1920-1940):
- 1920: Farmers (6,277 - 11%), Business (4,340 - 7%), Professionals (1,281 - 2%)
- 1930: Farmers (6,406 - 13%), Business (5,819 - 12%), Professionals (1,878 - 4%)
- 1940: Farmers (5,899 - 18%), Business (4,948 - 15%), Professionals (1,064 - 3%)
Total Employment (1930): Peak of 49,139 Japanese immigrants employed.

The return rate of Japanese immigrants was over 85% prior to WWII, with selective tendencies favoring lower-skilled workers.
Significant net out-migration trends were observed after the 1924 Immigration Act.
Table Data on Emigration by Occupation (1921-1930) reveals that farm laborers and domestic workers represented the large majority of departures.

To evaluate the impact of selective return migration, a counterfactual scenario was posited to model occupational distributions assuming uniform return migration.
The findings demonstrated a distinct difference in occupational status, accounting for selective return migration.

Actual vs. Counterfactual Estimates illustrate higher proportions of Japanese immigrants in both high and middle occupational categories in the actual scenario compared to a uniform return scenario, confirming that selective return migration played a substantial role in skewing perceived economic achievements.

This study's findings challenge and refine the narrative of Japanese American economic success and the factors contributing to it.
The evidence presented here facilitates a broader understanding of the complexities surrounding immigration, economic achievement, and racial identity, emphasizing that selective return migration affects how immigrant success is measured.

The work opens avenues for further study on the economic trajectories of other minority groups and sheds light on the implications of policy and social structures on immigrant success.