The Value of Southern Schooling in Northern Labor Markets: Evidence from the First Great Migration

Between 1910 and 1970, over six million African Americans migrated out of the South in search of greater opportunity. Although migrants were positively selected in many respects, Black, segregated schools in the South lagged behind white schools and schools in the North across many measures of educational quality. I examine whether northern labor markets placed less value on schooling gained in the South. Using linked census data and a family fixed effects framework, I estimate the relative returns to northern versus southern education. I find some evidence of regional differences in returns to education, but in the opposite direction of theoretical expectations. These results likely reflect limitations of the data – particularly measurement error and a noisy income proxy – that may be exacerbated by the model, rather than a true labor market penalty for northern schooling. These results suggest that, while northern schools may have been higher quality, regional differences in school quality may not have translated into measurable labor market advantages.