During the Great Depression, as today, migrants were accused of taking jobs and crowding relief rolls. At the time, protest concerned internal migrants rather than the foreign born. We investigate the effect of net migration on local labor markets, instrumenting for migrant flows to a destination with extreme weather events and variation in New Deal programs in typical sending areas. Migration had little effect on the hourly earnings of existing residents. Instead, migration prompted some residents to move away and others to lose weeks of work and/or access to relief jobs. Given the period's high unemployment, these lost work opportunities were costly to existing residents.
The article examines the impact of New Deal relief programs on infant mortality, non-infant mortality, and general fertility rates in major U.S. cities between 1929 and 1940. Effects are estimated using a variety of specifications and techniques for a panel of 114 cities that reported information on relief spending between 1929 and 1940. The significant rise in relief spending during the New Deal contributed to reductions in infant mortality, suicide rates, and some other causes of death, while contributing to increases in the general fertility rate. Similar to Ruhm's (2000) findings for the modern United States, the article finds that many types of death rates were pro-cyclical during the 1930s. Estimates of the relief costs associated with saving a life (adjusted for inflation) are similar to those found in studies of modern social insurance programs. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
Using data on New Deal grants to each U.S. county from 1933 to 1939, we estimate how relief and public works spending and payments to farmers through the Agricultural Adjustment Administration influenced retail consumption. On a per capita basis, we find that an additional dollar of public works and relief spending was associated with a 44 cent increase in 1939 retail sales. In contrast, the AAA seems to have had a negative effect on retail sales, suggesting that nonlandowners in the farm sector suffered disproportionate declines in income as a result of the AAA.
We examine the importance of Roosevelt's "relief, recovery, and reform" motives to the distribution of New Deal funds across over 3,000 U.S. counties, program by program. The major relief programs most closely followed Roosevelt's three R's. Other programs were tilted more in favor of areas with higher incomes. For all programs spending for political advantage in upcoming elections was a significant factor. Roosevelt's successful reelections were based on developing specific programs for a broad range of constituents, delivering on his stated goals, but also spending more at the margin for political purposes.
In contrast with existing research, the authors find that many of the changes in deaths from different causes during the Great Depression were unrelated to economic shocks. Further research is needed to understand the causes of the marked variations in mortality change across cities and states, including the effects of the New Deal and Prohibition.
and Omar Farooque provided excellent research assistance. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peerreviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.
Using county-level data on federal New Deal expenditures on public works and relief and Agricultural Adjustment Administration payments to farmers, this paper empirically examines the New Deals impact on inter-county migration from 1930 to 1940. We construct a net-migration measure for each county as the difference between the Censuss reported population change from 1930 to 1940 and the natural increase in population (births minus infant deaths minus non-infant deaths) over the same period. Our empirical approach accounts for both the simultaneity between New Deal allocations and migration and the geographic spillovers that likely resulted when economic activity in one county may have affected the migration decisions of people in neighboring counties. We find that greater spending on relief and public works was associated with significant migration into counties where such money was allocated. The introduction of our modern farm programs under the aegis of the Agricultural Adjustment Administration appears to have contributed to a net out-migration that sped the transition of people out of farming.
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