From Borders to Boardrooms: Immigrants' Impact on Productivity

Parisa Ghasemi, Paulino Teixeira and Carlos Carreira ()
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Parisa Ghasemi: University of Coimbra, Faculty of Economics

No 2024-01, CeBER Working Papers from Centre for Business and Economics Research (CeBER), University of Coimbra

Abstract: In this study, we investigate the impact of the share of the foreign labor force on the labor productivity of firms operating in Portugal between 2010 and 2019, drawing on data from two main sources: linked employer-employee data from Quadros de Pessoal and firm-level balance sheet data from SCIE-Sistema de Contas Integradas das Empresas. The empirical analysis, conducted using Fixed Effects Two-Stage Least Squares, shows that immigrants do not contribute to the productivity of firms in which they are employed. We further investigate whether the productivity response to increased immigrant labor varies across different subsamples. Notably, low-productivity firms experience adverse effects when the share of immigrants rises, whereas smaller firms benefit from their presence. Furthermore, our analysis shows a positive and statistically significant impact on labor productivity from foreign-born workers with 5 to 9 years of formal education. This finding suggests that this particular demographic brings valuable skills and contributions to the workforce, enhancing overall productivity levels.

Keywords: Firms; Immigration; Low skilled Immigrants; Productivity (search for similar items in EconPapers)
Pages: 50 pages
Date: 2024-06
New Economics Papers: this item is included in nep-eff, nep-eur, nep-int, nep-mig and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:gmf:papers:2024-01

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