IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/25302.html
   My bibliography  Save this paper

The Abolition of Immigration Restrictions and the Performance of Firms and Workers: Evidence from Switzerland

Author

Listed:
  • Andreas Beerli
  • Jan Ruffner
  • Michael Siegenthaler
  • Giovanni Peri

Abstract

We study a reform that granted European cross-border workers free access to the Swiss labor market and had a stronger effect on regions close to the border. The greater availability of cross-border workers increased foreign employment substantially. Although many cross-border workers were highly educated, wages of highly educated natives increased. The reason is a simultaneous increase in labor demand: the reform increased the size, productivity, and innovation performance of skill-intensive incumbent firms and attracted new firms, creating opportunities for natives to pursue managerial jobs. These effects are mainly driven by firms that reported skill shortages before the reform.

Suggested Citation

  • Andreas Beerli & Jan Ruffner & Michael Siegenthaler & Giovanni Peri, 2018. "The Abolition of Immigration Restrictions and the Performance of Firms and Workers: Evidence from Switzerland," NBER Working Papers 25302, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:25302
    Note: ITI LS PR
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w25302.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ege Aksu & Refik Erzan & Murat Guray Kirdar, 2018. "The Impact of Mass Migration of Syrians on the Turkish Labor Market," Koç University-TUSIAD Economic Research Forum Working Papers 1815, Koc University-TUSIAD Economic Research Forum.
    2. Michael Gerfin & Boris Kaiser, 2010. "The Effects of Immigration on Wages: An Application of the Structural Skill-Cell Approach," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 146(IV), pages 709-739, December.
    3. Giovanni Peri & Kevin Shih & Chad Sparber, 2015. "Foreign and Native Skilled Workers: What Can We Learn from H-1B Lotteries?," NBER Working Papers 21175, National Bureau of Economic Research, Inc.
    4. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle.
    5. Andreas Beerli & Giovanni Peri, 2015. "The Labor Market Effects of Opening the Border: Evidence from Switzerland," NBER Working Papers 21319, National Bureau of Economic Research, Inc.
    6. William R. Kerr & William F. Lincoln, 2010. "The Supply Side of Innovation: H-1B Visa Reforms and U.S. Ethnic Invention," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 473-508, July.
    7. Erik Hornung, 2014. "Immigration and the Diffusion of Technology: The Huguenot Diaspora in Prussia," American Economic Review, American Economic Association, vol. 104(1), pages 84-122, January.
    8. Fabio Beniamino Losa & Maurizio Bigotta & Gonzalez Oscar, 2014. "La libre circulation: joies ou douleurs?," Post-Print halshs-01182921, HAL.
    9. William R. Kerr, 2013. "U.S. High-Skilled Immigration, Innovation, and Entrepreneurship: Empirical Approaches and Evidence," NBER Working Papers 19377, National Bureau of Economic Research, Inc.
    10. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877.
    11. Mitaritonna, Cristina & Orefice, Gianluca & Peri, Giovanni, 2017. "Immigrants and firms’ outcomes: Evidence from France," European Economic Review, Elsevier, vol. 96(C), pages 62-82.
    12. Andreas Beerli & Ronald Indergand & Johannes Kunz, 2017. "The supply of foreign talent: How skill-biased technology drives the skill mix of immigrants Evidence from Switzerland 1990–2010," KOF Working papers 17-436, KOF Swiss Economic Institute, ETH Zurich.
    13. Ege Aksu & Refik Erzan & Murat Guray Kirdar, 2018. "The Impact of Mass Migration of Syrians on the Turkish Labor Market," Koç University-TUSIAD Economic Research Forum Working Papers 1815, Koc University-TUSIAD Economic Research Forum.
    14. Colella, Fabrizio & Lalive, Rafael & Sakalli, Seyhun Orcan & Thoenig, Mathias, 2019. "Inference with Arbitrary Clustering," IZA Discussion Papers 12584, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jan Ruffner & Michael Siegenthaler, 2016. "From Labor to Cash Flow? The Abolition of Immigration Restrictions and the Performance of Swiss Firms," KOF Working papers 16-424, KOF Swiss Economic Institute, ETH Zurich.
    2. Naguib, Costanza, 2019. "Estimating the Heterogeneous Impact of the Free Movement of Persons on Relative Wage Mobility," Economics Working Paper Series 1903, University of St. Gallen, School of Economics and Political Science.
    3. Andreas Beerli & Giovanni Peri, 2015. "The Labor Market Effects of Opening the Border: Evidence from Switzerland," NBER Working Papers 21319, National Bureau of Economic Research, Inc.
    4. Lewis, Ethan & Peri, Giovanni, 2015. "Immigration and the Economy of Cities and Regions," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 625-685, Elsevier.
    5. Ferrucci, Edoardo, 2020. "Migration, innovation and technological diversion: German patenting after the collapse of the Soviet Union," Research Policy, Elsevier, vol. 49(9).
    6. Verme, Paolo & Schuettler, Kirsten, 2021. "The impact of forced displacement on host communities: A review of the empirical literature in economics," Journal of Development Economics, Elsevier, vol. 150(C).
    7. Akgündüz, Yusuf Emre & Bağır, Yusuf Kenan & Cilasun, Seyit Mümin & Kirdar, Murat G., 2020. "Consequences of a Massive Refugee Influx on Firm Performance and Market Structure," IZA Discussion Papers 13953, Institute of Labor Economics (IZA).
    8. 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).
    9. Crown, Daniel & Faggian, Alessandra & Corcoran, Jonathan, 2020. "Foreign-Born graduates and innovation: Evidence from an Australian skilled visa program✰,✰✰,★,★★," Research Policy, Elsevier, vol. 49(9).
    10. Sari Pekkala Kerr & William R. Kerr & William F. Lincoln, 2015. "Skilled Immigration and the Employment Structures of US Firms," Journal of Labor Economics, University of Chicago Press, vol. 33(S1), pages 147-186.
    11. J. David Brown & John S. Earle & Mee Jung Kim & Kyung Min Lee, 2019. "Immigrant Entrepreneurs and Innovation in the US High-Tech Sector," NBER Chapters, in: The Roles of Immigrants and Foreign Students in US Science, Innovation, and Entrepreneurship, pages 149-171, National Bureau of Economic Research, Inc.
    12. Garnett Picot & Feng Hou, 2019. "Why do STEM immigrants do better in one country than another?," IZA World of Labor, Institute of Labor Economics (IZA), pages 459-459, April.
    13. Stephen G. Dimmock & Jiekun Huang & Scott J. Weisbenner, 2019. "Give Me Your Tired, Your Poor, Your High-Skilled Labor: H-1B Lottery Outcomes and Entrepreneurial Success," NBER Working Papers 26392, National Bureau of Economic Research, Inc.
    14. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    15. Baum, Christopher F & Dastory, Linda & Lööf, Hans & Stephan, Andreas, 2018. "Migrant STEM Entrepreneurs," Working Paper Series in Economics and Institutions of Innovation 474, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    16. Aysun Aygun & Murat Guray Kirdar & Berna Tuncay, 2020. "The Effect of Hosting 3.4 Million Refugees on the Health System in Turkey and Infant, Child, and Elderly Mortality among Natives," Koç University-TUSIAD Economic Research Forum Working Papers 2014, Koc University-TUSIAD Economic Research Forum.
    17. Altındağ, Onur & Bakış, Ozan & Rozo, Sandra V., 2020. "Blessing or burden? Impacts of refugees on businesses and the informal economy," Journal of Development Economics, Elsevier, vol. 146(C).
    18. Dario Diodato & Ricardo Hausmann & Frank Neffke, 2020. "The impact of return migration from the U.S. on employment and wages in Mexican cities," Papers in Evolutionary Economic Geography (PEEG) 2012, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2020.
    19. Onur Altındağ & Neeraj Kaushal, 2021. "Do refugees impact voting behavior in the host country? Evidence from Syrian refugee inflows to Turkey," Public Choice, Springer, vol. 186(1), pages 149-178, January.
    20. Lo Sasso, Anthony T., 2021. "Regulating high-skilled immigration: The market for medical residents," Journal of Health Economics, Elsevier, vol. 76(C).

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • 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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:25302. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.