Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/263804 
Authors: 
Year of Publication: 
2022
Series/Report no.: 
CESifo Working Paper No. 9874
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Prior literature on the economic impact of immigration has largely ignored changes to the composition of labor demand. In contrast, this paper uses a comprehensive collection of survey and administrative data to show that heterogeneous establishment entry and exit drive immigrant-induced job creation and a rightward shift of the productivity distribution in U.S. local industries. High-productivity establishments are more likely to enter and less likely to exit in high immigration environments, whereas low-productivity establishments are more likely to exit. These dynamics result in productivity growth. A general equilibrium model proposes a mechanism that ties immigrant workers to high-productivity firms and shows how accounting for changes to the employer distribution can yield substantially larger estimates of immigrant-generated economic surplus than canonical models of labor demand.
Subjects: 
immigration
business dynamics
productivity
firm heterogeneity
JEL: 
J23
J61
L11
F22
Document Type: 
Working Paper
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