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Immigrants and firms’ outcomes: Evidence from France

Mitaritonna, Cristina; Orefice, Gianluca; Peri, Giovanni (2017), Immigrants and firms’ outcomes: Evidence from France, European Economic Review, 96, July, p. 62-82. 10.1016/j.euroecorev.2017.05.001

Type
Article accepté pour publication ou publié
Date
2017-07
Journal name
European Economic Review
Volume
96
Number
July
Publisher
Elsevier
Pages
62-82
Publication identifier
10.1016/j.euroecorev.2017.05.001
Metadata
Show full item record
Author(s)
Mitaritonna, Cristina
Centre d'Etudes Prospectives et d'Informations Internationales [CEPII]
Orefice, Gianluca
Centre d'Etudes Prospectives et d'Informations Internationales [CEPII]
Laboratoire d'Economie de Dauphine [LEDa]
Peri, Giovanni
Abstract (EN)
In this paper we analyze the impact of an increase in the local supply of immigrants on firms’ outcomes, allowing for heterogeneous effects across firms. Using micro-level data on French manufacturing firms spanning the period 1995–2005, we show that a supply-driven increase in the share of foreign-born workers in a French département (a small geographic area) increased the total factor productivity of firms in that département. We also find this effect to be significantly stronger for firms with low initial productivity and small size. The positive productivity effect of immigrants was also associated with faster growth of capital, larger exports, and higher wages for natives. Highly-skilled natives, in competition with immigrants, moved towards firms hiring fewer immigrants spreading positive productivity effects to those firms too.
Subjects / Keywords
Immigrants; Firms; Productivity; Heterogeneity; Export
JEL
F22 - International Migration
E25 - Aggregate Factor Income Distribution
J61 - Geographic Labor Mobility; Immigrant Workers

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