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

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  • Amuedo-Dorantes, Catalina
  • Arenas Arroyo, Esther
  • Mahajan, Parag
  • Schmidpeter, Bernhard

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

  • Amuedo-Dorantes, Catalina & Arenas Arroyo, Esther & Mahajan, Parag & Schmidpeter, Bernhard, 2025. "Low-Wage Jobs, Foreign-Born Workers, and Firm Performance," Department of Economics Working Paper Series 384, WU Vienna University of Economics and Business.
    • Handle: RePEc:wiw:wus005:77526726
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