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Low-Wage Jobs, Foreign-Born Workers, and Firm Performance

Author

Listed:
  • Catalina Amuedo-Dorantes
  • Esther Arenas-Arroyo
  • Parag Mahajan
  • Bernhard Schmidpeter

Abstract

We examine how migrant workers impact firm performance using administrative data from the United States. Exploiting an unexpected change in firms’ likelihood of securing low-wage workers through the H-2B visa program, we find limited crowd-out of other forms of employment and no impact on average pay at the firm. Yet, access to H-2B workers raises firms’ annual revenues and survival likelihood. Our results are consistent with the notion that guest worker programs can help address labor shortages without inflicting large losses on incumbent workers.

Suggested Citation

  • Catalina Amuedo-Dorantes & Esther Arenas-Arroyo & Parag Mahajan & Bernhard Schmidpeter, 2024. "Low-Wage Jobs, Foreign-Born Workers, and Firm Performance," Working Papers 24-05, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:24-05
    as

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    File URL: https://www2.census.gov/library/working-papers/2024/adrm/ces/CES-WP-24-05.pdf
    File Function: First version, 2024
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    References listed on IDEAS

    as
    1. Parag Mahajan, 2021. "Immigration and Local Business Dynamics: Evidence from U.S. Firms," Working Papers 21-18, Center for Economic Studies, U.S. Census Bureau.
    2. Nada Wasi & Aaron Flaaen, 2015. "Record linkage using Stata: Preprocessing, linking, and reviewing utilities," Stata Journal, StataCorp LP, vol. 15(3), pages 672-697, September.
    3. Agostina Brinatti & Nicolas Morales, 2021. "Firm Heterogeneity and the Impact of Immigration: Evidence from German Establishments," Working Paper 21-16, Federal Reserve Bank of Richmond.
    4. Michael A. Clemens & Ethan G. Lewis & Hannah M. Postel, 2018. "Immigration Restrictions as Active Labor Market Policy: Evidence from the Mexican Bracero Exclusion," American Economic Review, American Economic Association, vol. 108(6), pages 1468-1487, June.
    5. Giovanni Peri & Kevin Shih & Chad Sparber, 2016. "STEM Workers, H-1B Visas, and Productivity in US Cities," World Scientific Book Chapters, in: The Economics of International Migration, chapter 9, pages 277-307, World Scientific Publishing Co. Pte. Ltd..
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    guest workers; migrants; employment; firm dynamics; H-2B visa;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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