@TechReport{iza:izadps:dp9217,
            	author={Lafortune, Jeanne and Tessada, José and Lewis, Ethan Gatewood},
            	title={People and Machines: A Look at the Evolving Relationship Between Capital and Skill in Manufacturing 1860-1930 Using Immigration Shocks},
            	year={2015},
	month={Jul},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={9217},
            	url={https://www.iza.org/publications/dp9217},
	abstract={This paper estimates the elasticity of substitution between capital and skill using variation across U.S. counties in immigration-induced skill-mix changes between 1860 and 1930. We find that capital began as a q-complement for skilled and unskilled workers, and then dramatically increased its relative complementary with skilled workers around 1890. Simulations of a parametric production function calibrated to our estimates imply the level of capital-skill complementarity after 1890 likely allowed the U.S. economy to absorb the large wave of less-skilled immigration with a modest decline in less-skilled relative wages. This would not have been possible under the older production technology.},
	keywords={manufacturing;skill-biased technical change;capital-skill complementarity;immigration;Second Industrial Revolution},
            }