Full Citation
Title: Immigration and Business Dynamics: Evidence from U.S. Firms
Citation Type: Working Paper
Publication Year: 2022
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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 immigrantinduced 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 immigrantgenerated economic surplus than canonical models of labor demand.
Url: https://www.cesifo.org/DocDL/cesifo1_wp9874.pdf
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Authors: Mahajan, Parag
Series Title: CESifo Working Papers
Publication Number: 9874
Institution: CESIFO
Pages: 1-96
Publisher Location:
Data Collections: IPUMS USA
Topics: Labor Force and Occupational Structure, Migration and Immigration, Poverty and Welfare
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