Institutional discrimination and assimilation: Evidence from the Chinese Exclusion Act of 1882

The Chinese Exclusion Act of 1882 marked a pivotal moment in U.S. immigration policy, effectively prohibiting Chinese immigration while institutionalizing discrimination against Asians within American society. This study investigates the repercussions of such institutional discrimination on the assimilation process of Asian immigrants, leveraging the timing of the enactment of the Act and the regional variation in the intensity of discrimination. Using a difference-in-differences approach, we find that discrimination posed significant obstacles to the labor market integration of Asian immigrants during the Exclusion Era (1882–1943), and Asian immigrants responded to discriminatory practices by investing in human capital, enhancing English proficiency, and adopting Americanized names. Furthermore, the triple-difference estimates reveal that these effects are more pronounced in regions characterized by heightened discrimination against Asians.