Do Firms Respond to Immigration?
AbstractResearch generally focuses on how immigration a¤ects native workers, while the impact of immigration on domestic .rms is often overlooked. This paper addresses this important omission by examining whether .rms respond to immigration by adjusting the location of their production activities. The results indicate that .rms respond to immigration at the extensive margin by increasing the number of establish- ments and at the intensive margin by increasing the size of existing establishments. This is an important .nding because .rm mobility can explain the insigni.cant im- pact of immigration on wages found using regional data but the negative impact found using national level data. Additional evidence indicates that these results are not driven by immigrants simply consuming more goods and services.
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Bibliographic InfoPaper provided by Department of Economics, Williams College in its series Department of Economics Working Papers with number 2010-11.
Length: 34 pages
Date of creation: Dec 2008
Date of revision: Jan 2011
Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-16 (All new papers)
- NEP-EDU-2010-10-16 (Education)
- NEP-LAB-2010-10-16 (Labour Economics)
- NEP-PUB-2010-10-16 (Public Finance)
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