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Low-Wage Jobs, Foreign-Born Workers, and Firm Performance

Author

Listed:
  • Catalina Amuedo-Dorantes

    (Department of Economics, University of California, Merced)

  • Esther Arenas-Arroyo

    (Department of Economics, Vienna University of Economics and Business)

  • Parag Mahajan

    (Department of Economics, University of Delaware)

  • Bernhard Schmidpeter

    (Department of Economics, Vienna University of Economics and Business)

Abstract

How do migrant workers impact firm performance? We exploit an unexpected Change in firms’ likelihood of securing low-wage workers through the U.S. H-2B visa program to address this question. Using comprehensive administrative data, we find that access to H-2B workers raises firms’ annual revenues and survival likelihood. We do not find evidence of crowding out of non-H-2B workers or negative spillover effects on competitor firms. Our results support the notion that formal guest worker programs can mitigate labor shortages while limiting harm to incumbent workers.

Suggested Citation

  • Catalina Amuedo-Dorantes & Esther Arenas-Arroyo & Parag Mahajan & Bernhard Schmidpeter, 2025. "Low-Wage Jobs, Foreign-Born Workers, and Firm Performance," Department of Economics Working Papers wuwp384, Vienna University of Economics and Business, Department of Economics.
    • Handle: RePEc:wiw:wiwwuw:wuwp384
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    Keywords

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    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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