The Abolition of Immigration Restrictions and the Performance of Firms and Workers: Evidence from Switzerland

Andreas Beerli, Jan Ruffner, Michael Siegenthaler and Giovanni Peri

American Economic Review, 2021, vol. 111, issue 3, 976-1012

Abstract: We study a reform that granted European cross-border workers free access to the Swiss labor market and had a stronger effect on regions close to the border. The greater availability of cross-border workers increased foreign employment substantially. Although many cross-border workers were highly educated, wages of highly educated natives increased. The reason is a simultaneous increase in labor demand: the reform increased the size, productivity, and innovation performance of skill-intensive incumbent firms and attracted new firms, creating opportunities for natives to pursue managerial jobs. These effects are mainly driven by firms that reported skill shortages before the reform.

JEL-codes: J15 J23 J24 J31 J61 K37 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (97)

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Related works:
Working Paper: The Abolition of Immigration Restrictions and the Performance of Firms and Workers: Evidence from Switzerland (2020)
Working Paper: The Abolition of Immigration Restrictions and the Performance of Firms and Workers: Evidence from Switzerland (2018)
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DOI: 10.1257/aer.20181779

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