Arbeitspapier

Immigration and Business Dynamics: Evidence from U.S. Firms

Prior literature on the economic impact of immigration has largely ignored changes to the composition of labor demand. In contrast, this paper uses a comprehensive collection of survey and administrative data to show that heterogeneous establishment entry and exit drive immigrant-induced job creation and a rightward shift of the productivity distribution in U.S. local industries. High-productivity establishments are more likely to enter and less likely to exit in high immigration environments, whereas low-productivity establishments are more likely to exit. These dynamics result in productivity growth. A general equilibrium model proposes a mechanism that ties immigrant workers to high-productivity firms and shows how accounting for changes to the employer distribution can yield substantially larger estimates of immigrant-generated economic surplus than canonical models of labor demand.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 9874

Klassifikation
Wirtschaft
Labor Demand
Geographic Labor Mobility; Immigrant Workers
Production, Pricing, and Market Structure; Size Distribution of Firms
International Migration
Thema
immigration
business dynamics
productivity
firm heterogeneity

Ereignis
Geistige Schöpfung
(wer)
Mahajan, Parag
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2022

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Mahajan, Parag
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2022

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