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Immigrants and firms’ outcomes: Evidence from France

Author

Listed:
  • Cristina Mitaritonna

    (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique)

  • Gianluca Orefice

    (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

  • Giovanni Peri

    (Department of Economics - UC San Diego - University of California [San Diego] - UC - University of California)

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

  • Cristina Mitaritonna & Gianluca Orefice & Giovanni Peri, 2017. "Immigrants and firms’ outcomes: Evidence from France," Post-Print hal-02950629, HAL.
    • Handle: RePEc:hal:journl:hal-02950629
    DOI: 10.1016/j.euroecorev.2017.05.001
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    Cited by:

    1. Ivan Etzo & Carla Massidda & Romano Piras, 2020. "Do Firms Follow Immigrants? Empirical Evidence From Italy," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 111(5), pages 718-737, December.
    2. 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.
    3. Akgündüz, Yusuf Emre & Torun, Huzeyfe, 2020. "Two and a half million Syrian refugees, tasks and capital intensity," Journal of Development Economics, Elsevier, vol. 145(C).
    4. Costanza Biavaschi & Giovanni Facchini & Anna Maria Mayda & Mariapia Mendola, 2018. "South–South migration and the labor market: evidence from South Africa," Journal of Economic Geography, Oxford University Press, vol. 18(4), pages 823-853.
    5. Laurent Bossavie & Daniel Garrote‐Sanchez & Mattia Makovec & Çağlar Özden, 2022. "Do immigrants shield the locals? Exposure to COVID‐related risks in the European Union," Review of International Economics, Wiley Blackwell, vol. 30(5), pages 1478-1514, November.
    6. Caselli, Mauro & Traverso, Silvio, 2025. "Under Pressure: Trade Competition from Low-Wage Countries and Demand for Immigrant Labor in Italy," GLO Discussion Paper Series 1562, Global Labor Organization (GLO).
    7. Eva Moreno‐Galbis & Jeremy Tanguy & Ahmed Tritah & Catherine Laffineur, 2019. "Immigrants’ Wage Performance in a Routine Biased Technological Change Era: France 1994–2012," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 58(4), pages 623-673, October.
    8. Wu, Ziqi & Xiao, Yi & Zhang, Jian, 2022. "Labor mobility and corporate investment—Evidence from a Quasi-natural experiment in China," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 1110-1129.
    9. Jeremias Nieminen & Sanni Kiviholma & Ohto Kanninen & Hannu Karhunen, 2024. "Regulating Labor Immigration: The Effects of Lifting Labor Market Testing," Working Papers 344, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    10. Edo, Anthony & Giesing, Yvonne & Öztunc, Jonathan & Poutvaara, Panu, 2019. "Immigration and electoral support for the far-left and the far-right," European Economic Review, Elsevier, vol. 115(C), pages 99-143.
    11. Léa Marchal & Guzman Ourens & Giulia Sabbadini, 2022. "When Immigrants Meet Exporters: A Reassessment of the Immigrant Wage Gap," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03905529, HAL.
    12. Léa Marchal & Clément Nedoncelle, 2017. "How Foreign-born Workers Foster Exports," Working Papers 2017.02, International Network for Economic Research - INFER.
    13. Massimiliano Bratti & Luca De Benedictis & Gianluca Santoni, 2020. "Immigrant entrepreneurs, diasporas, and exports," Journal of Regional Science, Wiley Blackwell, vol. 60(2), pages 249-272, March.
    14. Ian Goldin & Pantelis Koutroumpis & François Lafond & Julian Winkler, 2024. "Why Is Productivity Slowing Down?," Journal of Economic Literature, American Economic Association, vol. 62(1), pages 196-268, March.
    15. Dongmin Kong & Jiuyi Zhang & Mengxu Xiong, 2024. "The impact of low‐skilled migrants on firm productivity: Evidence from hukou reform in China," Review of Development Economics, Wiley Blackwell, vol. 28(3), pages 1192-1230, August.
    16. Andreas Beerli & Jan Ruffner & Michael Siegenthaler & Giovanni Peri, 2021. "The Abolition of Immigration Restrictions and the Performance of Firms and Workers: Evidence from Switzerland," American Economic Review, American Economic Association, vol. 111(3), pages 976-1012, March.
    17. Nathan Nunn, 2019. "Rethinking economic development," Canadian Journal of Economics, Canadian Economics Association, vol. 52(4), pages 1349-1373, November.
    18. Edo, Anthony & Rapoport, Hillel, 2019. "Minimum wages and the labor market effects of immigration," Labour Economics, Elsevier, vol. 61(C).
    19. Chletsos Michael & Roupakias Stelios, 2019. "Do Immigrants Compete with Natives in the Greek Labour Market? Evidence from the Skill-Cell Approach before and during the Great Recession," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(2), pages 1-30, April.
    20. Brunello, Giorgio & Lodigiani, Elisabetta & Rocco, Lorenzo, 2020. "Does low-skilled immigration increase profits? Evidence from Italian local labour markets," Regional Science and Urban Economics, Elsevier, vol. 85(C).
    21. Brunello, Giorgio & Lodigiani, Elisabetta & Rocco, Lorenzo, 2017. "Does Low Skilled Immigration Cause Human Capital Polarization? Evidence from Italian Provinces," IZA Discussion Papers 11062, Institute of Labor Economics (IZA).
    22. 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

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    JEL classification:

    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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