International Development

FSI researchers consider international development from a variety of angles. They analyze ideas such as how public action and good governance are cornerstones of economic prosperity in Mexico and how investments in high school education will improve China’s economy.

They are looking at novel technological interventions to improve rural livelihoods, like the development implications of solar power-generated crop growing in Northern Benin.

FSI academics also assess which political processes yield better access to public services, particularly in developing countries. With a focus on health care, researchers have studied the political incentives to embrace UNICEF’s child survival efforts and how a well-run anti-alcohol policy in Russia affected mortality rates.

FSI’s work on international development also includes training the next generation of leaders through pre- and post-doctoral fellowships as well as the Draper Hills Summer Fellows Program.

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In the late 19th and early 20th centuries, an "open borders" United States absorbed millions of European immigrants in one of the largest mass migrations ever. New research by Stanford economist Ran Abramitzky challenges the perception that immigrants lagged behind native-born Americans in job pay and career growth.
 

BY CLIFTON B. PARKER

European immigrants to America during the country's largest migration wave in the late 19th and early 20th centuries had earnings comparable to native-born Americans, contrary to the popular perception, according to new Stanford research.

"Our paper challenges conventional wisdom and prior research about immigrant assimilation during this period," said Ran Abramitzky, an associate professor of economics at Stanford, faculty affiliate of The Europe Center and author of the research paper in the Journal of Political Economy.

New research challenges conventional wisdom about immigrant assimilation during the bygone era of open borders and mass migration.
Photo Credit: Lewis Hine/Library of Congress

New research challenges conventional wisdom about immigrant assimilation during the bygone era of open borders and mass migration.

Abramitzky and his colleagues found the average immigrant in that period did not face a substantial "earnings penalty" – lower pay than native-born workers – upon their arrival.

"The initial earnings penalty is overstated," said Abramitzky.

He said the conventional view is that the average European immigrants held substantially lower-paying jobs than native-born Americans upon first arrival and caught up with natives' earnings after spending some time in the United States. But that perception does not hold up to the facts, he said.

Abramitzky's co-authors include Leah Platt Boustan from the University of California, Los Angeles, and Katherine Eriksson from California Polytechnic State University.

The researchers examined records on 21,000 natives and immigrants from 16 European countries in U.S. Census Bureau data from 1900 to 1910 to 1920.

"Even when U.S. borders were open, the average immigrant who ended up settling in the United States over the long term held occupations that commanded pay similar to that of U.S. natives upon first arrival," Abramitzky said.

In that bygone era of "open borders," Abramitzky said, native-born Americans were concerned that immigrants were not assimilating properly into society – yet, on the whole, this concern appears to be unfounded. "Such concerns are echoed in today's debate over immigration policy," he added.

At the same time, Abramitzky said that immigrants from poorer countries started out with lower paid occupations relative to natives and did not manage to close this gap over time.

"This pattern casts doubt on the conventional view that, in the past, immigrants who arrived with few skills were able to invest in themselves and succeed in the U.S. economy within a single generation," Abramitzky and his colleagues wrote.

Age of migration

America took in more than 30 million immigrants during the Age of Mass Migration (1850-1913), a period when the country had open borders. By 1910, 22 percent of the U.S. labor force – and 38 percent of workers in non-southern cities – was foreign-born (compared with 17 percent today).

As the research showed, immigrants then were more likely than natives to settle in states with a high-paying mix of occupations. Location choice was an important strategy they used to achieve occupational parity with native-born Americans.

"This Age of Mass Migration not only is of interest in itself, as one of the largest migration waves in modern history, but also is informative about the process of immigrant assimilation in a world without migration restrictions," Abramitzky said.

Over time, many of the immigrants came from the poorer regions of southern and eastern Europe.

Abramitzky pointed out that native-born Americans in the late 19th and early 20th centuries were concerned about poverty in immigrant neighborhoods and low levels of education among children, many of whom left school early to work in industry.

Consequently, American political progressives championed a series of reforms, including U.S. child labor laws and compulsory schooling requirements.

Still, some natives believed that new arrivals would never fit into American society. And so, in 1924, Congress set a strict quota of 150,000 immigrant arrivals per year, with more slots allocated to immigrants from northern and western European countries than those from southern and eastern Europe.

But those early-20th-century fears of unassimilated immigrants were baseless, according to Abramitzky.

"Our results indicate that these concerns were unfounded: The average long-term immigrants in this era arrived with skills similar to those of natives and experienced identical rates of occupational upgrading over their life cycle," he wrote.

How does this lesson apply to today's immigration policy discussion? Should the numbers of immigrants and their countries of origin be limited and those with higher skills be given more entry slots?

Abramitzky said stereotyping immigrants has affected the political nature of the contemporary debate.

"These successful outcomes suggest that migration restrictions are not always necessary to ensure strong migrants' performance in the labor market," he said.

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First sight of New York Bay--arrival of a European steamer.
James Wells Champney/New York Public Library
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PROGRAM
Friday May 9, 2014

9:00am Introduction

9:10am Does Naturalization Foster the Political Integration of Immigrants? Evidence from a Regression Discontinuity Design in Switzerland
Jens Hainmueller & Dominik Hangartner
Discussant: Rafaela Dancygier

9:50am Lingua Franca: How Language Shapes the Direction of Public Opinion
Efrén Pérez
Discussant: Rahsaan Maxwell

10:30am BREAK

10:50am Transnational Ties and Support for International Redistribution
Lauren Prather
Discussant: Ali Valenzuela

11:30am Gender-Based Stereotyping and Negotiation Performance: an Experimental Study
Jorge Bravo
Discussant: Rob Ford

12:10pm BREAK

1:00pm The Rhetoric of Closed Borders: Quotas, Lax Enforcement and Illegal Migration
Giovanni Facchini & Cecilia Testa
Discussant: Karen Jusko

1:40pm Varieties of Diaspora Management
Harris Mylonas
Discussant: Yotam Margalit

2:20pm BREAK

2:40pm The Situational Context of Attitudes Towards Immigrant-Origin Minorities
Rahsaan Maxwell
Discussant: Jorge Bravo

3:20pm The Politics of Churchgoing and its Consequences among Whites, Blacks and Latinos in the U.S.
Ali Valenzuela
Discussant: Cara Wong

 

Saturday May 10, 2014

9:50am How State Support of Religion Shapes Religious Attitudes Toward Muslims
Mark Helbling
Discussant: Sara Goodman

10:30am BREAK

10:50am Opposition to Race Targeted Policies – Ideology or Racism? Particular or Universal? Experimental Evidence from Britain
Rob Ford
Discussant: Jens Hainmueller

11:30am Conflict and Consensus on American Public Opinion on Illegal Immigration
Matthew Wright
Discussant: Efrén Pérez

12:10pm BREAK

1:00pm The Electoral Geography of American Immigration, 1880-1900
Karen Jusko
Discussant: Dan Hopkins

1:40pm Do We Really Know That Employers Want Illegal Immigration?
Maggie Peters
Discussant: Giovanni Facchini

2:20pm BREAK

2:40pm Nurture over Nature: Explaining Muslim Integration Discrepancies in Britain, France and the United States
Justin Gest
Discussant: Claire Adida

3:20pm Immigration and Electoral Appeals over the Past Half Century: A Sketch of the Evidence
Rafaela M. Dancygier & Yotam Margalit
Discussant: Cecilia Testa

4:00pm Looking Ahead

CISAC Conference Room
Encina Hall Central, 2nd floor
616 Serra St.
Stanford University
Stanford, CA 94305
 

Karen Jusko Assistant Professor of Political Science Participant and Workshop Organizer Stanford University
Claire Adida Participant UC San Diego
Jorge Bravo Participant Rutgers University
Rafaela Dancygier Participant Princeton University
Giovanni Facchini Participant University of Nottingham
Robert Ford Participant University of Manchester
Justin Gest Participant Harvard University
Sara Wallace Goodman Participant UC Irvine

616 Serra Street
Encina Hall West, Room 440
Stanford, CA 94305-6044

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Kimberly Glenn Professor of Political Science
Professor, by courtesy, of Political Economy
101105_jenshainmueller_1583.jpg

Jens Hainmueller's research has appeared in journals such as the American Political Science Review, American Journal of Political Science, Journal of the American Statistical Association, Review of Economics and Statistics, Political Analysis, International Organization, and the Journal of Statistical Software, and has received awards from the American Political Science Association, the Society of Political Methodology, the Midwest Political Science Association.

Hainmueller received his PhD from Harvard University and also studied at the London School of Economics, Brown University, and the University of Tübingen. Before joining Stanford, he served on the faculty of the Massachusetts Institute of Technology.

Affiliated faculty at The Europe Center
Participant Stanford University
Dominik Hangartner Participant London School of Economics and Political Science
Marc Helbling Participant WZB Berlin Social Science Center
Dan Hopkins Participant Georgetown University
Yotam Margalit Participant Columbia University
Rahsaan Maxwell Participant UNC at Chapel Hill
Harris Mylonas Participant George Washington University
Efrén O. Pérez Participant Vanderbilt University
Maggie Peters Participant Yale University
Lauren Prather Participant Stanford University
Judith Spirig Participant University of Zurich
Cecilia Testa Participant Royal Holloway University of London
Ali A. Valenzuela Participant Princeton University
Cara Wong Participant University of Illinois, Urbana-Champaign
Matthew Wright Participant American University (Washington, D.C.)
Workshops

616 Serra Street
Encina Hall West, Room 440
Stanford, CA 94305-6044

0
Kimberly Glenn Professor of Political Science
Professor, by courtesy, of Political Economy
101105_jenshainmueller_1583.jpg

Jens Hainmueller's research has appeared in journals such as the American Political Science Review, American Journal of Political Science, Journal of the American Statistical Association, Review of Economics and Statistics, Political Analysis, International Organization, and the Journal of Statistical Software, and has received awards from the American Political Science Association, the Society of Political Methodology, the Midwest Political Science Association.

Hainmueller received his PhD from Harvard University and also studied at the London School of Economics, Brown University, and the University of Tübingen. Before joining Stanford, he served on the faculty of the Massachusetts Institute of Technology.

Affiliated faculty at The Europe Center

Two premises motivate the “Immigration and Integration” project that is able to get off the ground with seed money from the FSI Policy Implementation Lab. First, there is compelling evidence of systematic discrimination, integration failure, and growing hostility towards immigrants throughout Western Europe. Second, while there is a range of innovative policies developed across Europe in the past decade to address this compelling public concern, existing research falls short in providing rigorous evidence on the success or failure of these policies.

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The paper that will be presented at this seminar, “Religion, Division of Labour and Conflict: Anti-Semitism in German Regions over 700 Years,” is co-authored by Luigi Pascali.

Part of the Economic History Seminar Series, co-sponsored by The Europe Center.

Landau Economics Building, Room 351

Sascha Becker Professor of Economics and deputy director of the ESRC Centre for Competitive Advantage in the Global Economy (CAGE) Speaker University of Warwick, UK
Seminars
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Part of the Economic History Seminar Series, co-sponsored by The Europe Center.

Fabian Waldinger Associate Professor of Economics Speaker University of Warwick, UK
Seminars
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Nicholas Craft will present new estimates of TFP growth at the sectoral level and an account of sectoral contributions to overall productivity growth, from his paper co-authored by Gerben Bakker (London School of Economics) and Pieter Woltjer (Wageningen University).  They improve on Kendrick (1961) in several ways including expanding the coverage of sectors, extending estimates to 1941, and better accounting for labor quality.  The results have important implications including that the pattern of productivity growth was generally ‘yeasty’ rather than ‘mushroomy’, that the 1930s did not experience the fastest TFP growth of the 20th century, and that the role of electricity as a general purpose technology does not explain the ‘yeastiness’ of manufacturing in the 1920s.

The link for a PDF copy of the paper may be found below.

Part of the Economic History Seminar Series, co-sponsored by The Europe Center.

Paper: A Vision of the Growth Process in a Technologically progressive Economy: the United States, 1899-1941
Download pdf

Landau Economics Building, Room 351

Nicholas Crafts Professor of Economics and director of the ESRC Centre for Competitive Advantage in the Global Economy (CAGE) Speaker University of Warwick, UK
Seminars
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Appeared in Stanford Report, May 29, 2014

By Clifton B. Parker

The electoral eruption of anti-European Union populism is a reflection of structural flaws in that body but does not represent a fatal political blow, according to Stanford scholars.

In the May 25 elections for the European Parliament, anti-immigration parties won 140 of the 751 seats, well short of control, but enough to rattle supporters of the EU, which has 28 member nations. In Britain, Denmark, France and Greece, the political fringe vote totals stunned the political establishments.

Stanford political scientist Francis Fukuyama said the rise of extremism and anti-elitism is not surprising in the wake of the 2008 economic downturn and subsequent high levels of unemployment throughout Europe. In one sense, the EU elites have themselves to blame, he said.

"The elites who designed the EU and the eurozone failed in a major way," he said. "There was a structural flaw in the design of the euro (monetary union absent fiscal union, and the method of disciplining countries once in the zone)," said Fukuyama, the Olivier Nomellini Senior Fellow at Stanford's Freeman Spogli Institute for International Studies and the Center for Democracy, Development and the Rule of Law, and Research Afflilate at The Europe Center.

Some have argued that the European Union should adopt a form of fiscal union because without one, decisions about taxes and spending remain at the national level.

As Fukuyama points out, this becomes a problem, as in the case of a debt-ridden Greece, which he believes should not have qualified for EU membership in the first place. In fact, he said, it would have been better for Greece itself to leave the euro at the outset of the 2008 crisis.

Still, Fukuyama said the big picture behind the recent election is clear – it was a confluence of issues and timing.

"It is a bit like an off-year election in the U.S., where activists are more likely to vote than ordinary citizens," he said.

Fukuyama believes the EU will survive this electoral crisis. "I think the EU will be resilient. It has weathered other rejections in the past. The costs of really exiting the EU are too high in the end, and the elites will adjust, having been given this message," he said.

Meanwhile, the populist parties in the different countries are not unified or intent on building coalitions with each other.

"Other than being anti-EU, most of them have little in common," Fukuyama said. "They differ with regard to specific positions on immigration, economic policy, and they respond to different social bases."

Ongoing anger

Dan Edelstein, a professor of French, said the largest factor for success by extremist candidates was "ongoing anger toward the austerity policy imposed by the EU," primarily by Germany.

Edelstein estimates that a large majority of French voters are still generally supportive of the EU. For the time being, the anti-EU faction does not have a majority, though they now have much more representation in the European Parliament.

Edelstein noted existing strains among the anti-EU parties – for example, the UK Independence Party in Britain has stated that it would not form an alliance with the National Front party in France.

Immigration remains a thorny issue for some Europeans, Edelstein said.

"'Immigration' in most European political debates, tends to be a synonym for 'Islam.' While there are some countries, such as Britain, that are primarily worried about the economic costs of immigration, in most continental European countries, the fears are cultural," he said.

As Edelstein put it, Muslims are perceived as a "demographic threat" to white or Christian Europe. However, he is optimistic in the long run.

"It seems a little early to be writing the obituary of the EU. Should economic conditions improve over the next few years, as they are predicted to, we will likely see this high-water mark of populist anger recede," said Edelstein.

Cécile Alduy, an associate professor of French, writes in the May 28 issue of The Nation about how the ultra-right-wing National Front came in first place in France's election.

"This outcome was also the logical conclusion of a string of political betrayals, scandals and mismanagement that were only compounded by the persistent economic and social morass that has plunged France into perpetual gloom," she wrote.

Historian J.P. Daughton said that like elsewhere in the world, immigration often becomes a contentious issue in Europe in times of economic difficulties.  

"High unemployment and painful austerity measures in many parts of Europe have led extremist parties to blame immigrants for taking jobs and sapping already limited social programs," he said.

Anti-immigration rhetoric plays particularly well in EU elections, Daughton said. "Extremist parties portray European integration as a threat not only to national sovereignty, but also to national identity.

Edelstein, Alduy and Daughton are all Faculty Affiliates of The Europe Center.

Wake-up call

Russell A. Berman, a professor of German studies and comparative literature, said many Europeans perceive the EU as "somehow impenetrable, far from the civic politics of the nation states."

As a result, people resent regulations issued by an "intangible bureaucracy," and have come to believe that the European Parliament has not grappled with major issues such as mustering a coherent foreign policy voice, he said.

"The EU can be great on details but pretty weak on the big picture," said Berman, who is the Walter A. Haas Professor in the Humanities, Senior Fellow at the Hoover Institution, and Faculty Affiliate of The Europe Center. "It is this discrepancy that feeds the dissatisfaction."

Yet he points out that the extremist vote surged in only 14 nations of the EU – in the other 14, there was "negligible extremism," as he describes it.

"We're a long way from talking about a fatal blow, but the vote is indeed a wake-up call to the centrists that they have to make a better case for Europe," Berman said.

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A man walks past a board displaying provisional results of the European Parliament election at the EU Parliament in Brussels May 25, 2014.
REUTERS / Francois Lenoir
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Appeared in Stanford Report, June 9, 2014

By Clifton B. Parker

A new chapter in the Scottish independence movement could reshape the future of that country and the rest of the United Kingdom, Stanford faculty say.

Scotland will hold an election on Sept. 18 to decide whether it should break away from the United Kingdom. With the official kickoff of the Scottish independence referendum on May 30, the 4.1 million Scots who make up the country's electorate are mulling over how independence would affect a range of issues including agriculture, education, defense, health care and more.

Now, momentum seems to be on the side of the independence vote, said Christophe Crombez, a consulting professor in Stanford's Europe Center in the Freeman Spogli Institute for International Studies.

"If you had asked me a year ago whether Scotland would vote for independence, I would have said no. Now I am not so sure. The current UK government has not handled this issue well. Threats, such as warnings that Scotland could not keep the pound, have backfired," said Crombez.

Economics and the EU

Scotland, which has significant – though somewhat dwindling – oil operations in the North Sea, would likely remain part of the European Union if it leaves the UK, Crombez said. Scotland highly favors membership, whereas Britain's view is more mixed about the 28-member bloc.

"The economic consequences of leaving the UK will be minimal for Scotland. Scotland would remain part of the EU single market. It could possibly keep more of its oil revenues," he said.

The political ramifications for a redrawn Great Britain are significant. "Great Britain would lose more of its prominent status in world politics. England would have to deal with an identity crisis, having lost its empire after World War II and now witnessing the unraveling of the UK," he said.

Extracting Scotland from the Great Britain political equation would likely give more power to conservative British voters, as Scotland tends to vote on the left side, Crombez said.

"Also, the British government wants to put the issue behind them. So when the vote goes down, they can finally move on one way or another from the Scottish independence issue," he said.

If Scottish voters elect to remain part of the United Kingdom, the British government has said Scotland will not get another chance at independence.

Historical origins

The current move toward independence stems from the 1980s, when Margaret Thatcher was Britain's prime minister.

"Thatcher's policies were intensely disliked in Scotland," Crombez said. "While she kept on winning elections in England, her party's support in Scotland dwindled. Scotland felt that England was imposing policies on it that it did not want. Devolution and independence were seen as ways to get out of that situation."

As a result, since the early 1990s the conservatives have not played a significant role in Scottish politics, he said. And in 1997, voters in Scotland approved "devolution," which granted them legislative powers in the form of the Scottish Parliament.

"In my opinion, calls for independence would have been even stronger if Scotland had not been granted the autonomy it got in the 1990s," he said.

The roots of Scotland's drive for independence stretch deep into Great Britain's past, said Priya Satia, associate professor of modern British history and Europe Center faculty affiliate.

According to Satia, "Some might say as far back as the Jacobite rebellion against the union of Scotland with England and Wales in 1707. Others might point to a much later originary moment – regional nationalisms like Scotland's emerged in the latter half of the 20th century as part of the British reaction to the loss of empire."

From 1603, Scotland and England shared the same monarch when James VI of Scotland was declared King of England and Ireland as well. The two kingdoms united in 1707 to form the Kingdom of Great Britain. Prior to this, Scotland had been a sovereign state for more than 800 years.

Scotland, Wales, England and Ireland lost that sense of "common identity" to a shared British brotherhood once the "colonial 'other'" no longer existed in the post-WWII period, said Satia.

Historian Peter Stansky says it would not be wise for Scotland to exit the UK.

"I think it would probably be a mistake for Scotland to vote for independence. At the moment I think it has a good situation," said Stansky, the Frances and Charles Field Professor of History, Emeritus.

Stansky noted, "It can act independently in some areas, participate in some British decisions and has English backup. Independence would be a nice sentimental gesture, but a bad move."

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Britain's Prime Minister tours the Walcheren Barracks in Glasgow, Scotland
Britain's Prime Minister tours the Walcheren Barracks in Glasgow, Scotland May 15, 2014. Cameron urged Scots on Thursday to stay in the United Kingdom during an unusual two-day visit to Scotland to counter a rise in support for secession in opinion polls and criticism of the anti-independence campaign.
REUTERS/Russell Cheyne
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Petra Moser, Assistant Professor of Economics and Europe Center faculty affiliate, and co-authors Alessandra Voena and Fabian Waldinger's forthcoming article in the American Economic Review analyzes how Jewish émigrés from Nazi Germany influenced chemical innovation in the U.S. 

For a more information, please visit the publication's webpage by clicking on the article title below.

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