EconPapers    
Economics at your fingertips  
 

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

Parag Mahajan

No 9874, CESifo Working Paper Series from CESifo

Abstract: 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.

Keywords: immigration; business dynamics; productivity; firm heterogeneity (search for similar items in EconPapers)
JEL-codes: F22 J23 J61 L11 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-bec, nep-int, nep-lab, nep-sbm, nep-tid and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp9874.pdf (application/pdf)

Related works:
Working Paper: Immigration and Local Business Dynamics: Evidence from U.S. Firms (2021) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_9874

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().

 
Page updated 2024-05-08
Handle: RePEc:ces:ceswps:_9874