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

Author

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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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    Cited by:

    1. is not listed on IDEAS
    2. Silliman, Mikko & Willén, Alexander, 2024. "Worker Power, Immigrant Sorting, and Firm Dynamics," Discussion Paper Series in Economics 13/2024, Norwegian School of Economics, Department of Economics.

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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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