We attempt to explain the severe 1920-21 recession, the roaring 1920s boom, and the slide into the Great Depression after 1929 in a unified framework. The model combines monopolistic product market competition with search frictions in the labor market, allowing for both individual and collective...

This paper uses Canadian Census data from 1911 to 1931 to trace the labour market assimilation of immigrants up to the onset of the Great Depression. We find that substantial earnings convergence between 1911 and 1921 was reversed between 1921 and 1931, with immigrants from Continental Europe...