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Immigrants and firms’ outcomes: Evidence from France

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  • Mitaritonna, Cristina
  • Orefice, Gianluca
  • Peri, Giovanni

Abstract

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.

Suggested Citation

  • Mitaritonna, Cristina & Orefice, Gianluca & Peri, Giovanni, 2017. "Immigrants and firms’ outcomes: Evidence from France," European Economic Review, Elsevier, vol. 96(C), pages 62-82.
  • Handle: RePEc:eee:eecrev:v:96:y:2017:i:c:p:62-82
    DOI: 10.1016/j.euroecorev.2017.05.001
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    Citations

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    Cited by:

    1. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr, 2018. "The Effects of Immigration in Developed Countries: Insights from Recent Economic Research," CEPII Policy Brief 2018-22, CEPII research center.
    2. Anthony Edo & Yvonne Giesing & Jonathan Öztunc & Panu Poutvaara, 2017. "Immigration and Electoral Support for the Far Left and the Far Right," Working Papers 2017-20, CEPII research center.
    3. Bratti, Massimiliano & De Benedictis, Luca & Santoni, Gianluca, 2018. "Immigrant Entrepreneurs, Diasporas and Exports," IZA Discussion Papers 11280, Institute for the Study of Labor (IZA).
    4. Brunello, Giorgio & Lodigiani, Elisabetta & Rocco, Lorenzo, 2017. "Does Low Skilled Immigration Cause Human Capital Polarization? Evidence from Italian Provinces," IZA Discussion Papers 11062, Institute for the Study of Labor (IZA).
    5. Marchal, Léa & Nedoncelle, Clément, 2017. "How foreign-born workers foster exports," Kiel Working Papers 2071, Kiel Institute for the World Economy (IfW).
    6. Akgündüz, Yusuf Emre & Torun, Huzeyfe, 2018. "Two and a half million Syrian refugees, skill mix and capital intensity," GLO Discussion Paper Series 186, Global Labor Organization (GLO).

    More about this item

    Keywords

    Immigrants; Firms; Productivity; Heterogeneity; Export;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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