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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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    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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