Immigrants and Firms' Outcomes: Evidence from France

49 Pages Posted: 28 Nov 2016

See all articles by Cristina Mitaritonna

Cristina Mitaritonna

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

Gianluca Orefice

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

Giovanni Peri

University of California, Davis - Department of Economics

Date Written: November 2016

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 according to their initial productivity. 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 department (a small geographic area) increased the total factor productivity of firms in that department. Immigrants were prevalently highly educated and this effect is consistent with a positive complementarity and spillover effects from their skills. 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 were pushed towards firms that did not hire too many immigrants spreading positive productivity effects to those firms too. Because of stronger effects on smaller and initially less productive firms, the aggregate effects of immigrants at the department level on average productivity and employment was small.

Suggested Citation

Mitaritonna, Cristina and Orefice, Gianluca and Peri, Giovanni, Immigrants and Firms' Outcomes: Evidence from France (November 2016). NBER Working Paper No. w22852. Available at SSRN: https://ssrn.com/abstract=2876397

Cristina Mitaritonna (Contact Author)

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII) ( email )

9 rue Georges Pitard
Paris Cedex 15, F-75015
France

Gianluca Orefice

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII) ( email )

9 rue Georges Pitard
Paris Cedex 15, F-75015
France

Giovanni Peri

University of California, Davis - Department of Economics ( email )

One Shields Drive
Davis, CA 95616-8578
United States
530-752-3033 (Phone)
530-752-9382 (Fax)

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