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Only human? Immigration and firm productivity in Britain

Author

Listed:
  • Hall, Tessa
  • Manning, Alan

Abstract

This paper estimates the impact of migration on productivity by estimating production functions for British firms. We find that much of the apparent higher productivity of migrants is the result of sorting across areas, industries, and firms. If we include firm fixed effects, the estimated productivity advantage of migrants over locals is not significantly different from zero. One possible interpretation of our results is that migrants and locals with similar skills are equally productive; there is nothing distinctive about migrants. However, since productivity estimates are imprecise after controlling for firm fixed effects, we also can't reject the hypothesis that migrants and locals differ in their productivity.

Suggested Citation

  • Hall, Tessa & Manning, Alan, 2024. "Only human? Immigration and firm productivity in Britain," LSE Research Online Documents on Economics 126776, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:126776
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    File URL: https://researchonline.lse.ac.uk/id/eprint/126776/
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    References listed on IDEAS

    as
    1. Shmuel San, 2023. "Labor Supply and Directed Technical Change: Evidence from the Termination of the Bracero Program in 1964," American Economic Journal: Applied Economics, American Economic Association, vol. 15(1), pages 136-163, January.
    2. Pierre Azoulay & Benjamin F. Jones & J. Daniel Kim & Javier Miranda, 2022. "Immigration and Entrepreneurship in the United States," American Economic Review: Insights, American Economic Association, vol. 4(1), pages 71-88, March.
    3. Daniel A. Ackerberg & Kevin Caves & Garth Frazer, 2015. "Identification Properties of Recent Production Function Estimators," Econometrica, Econometric Society, vol. 83, pages 2411-2451, November.
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    Keywords

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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