Immigration and Firm Performance: a city-level approach

This article analyses the effect of immigration flows on the growth and efficiency of manufacturing firms in Spanish cities. While most studies were focusing on the effect immigrants have on labour markets at an aggregate level, here, we argue that the impact of immigration on firm performance shoul...

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Main Authors: Mercedes Teruel Carrizosa, Agustí Segarra Blasco
Format: Article
Language:English
Published: AECR 2009-01-01
Series:Investigaciones Regionales - Journal of Regional Research
Online Access:http://www.redalyc.org/articulo.oa?id=28911701006
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author Mercedes Teruel Carrizosa
Agustí Segarra Blasco
author_facet Mercedes Teruel Carrizosa
Agustí Segarra Blasco
author_sort Mercedes Teruel Carrizosa
collection DOAJ
description This article analyses the effect of immigration flows on the growth and efficiency of manufacturing firms in Spanish cities. While most studies were focusing on the effect immigrants have on labour markets at an aggregate level, here, we argue that the impact of immigration on firm performance should not only be considered in terms of the labour market, but also in terms of how city's amenities can affect the performance of firms. Implementing a panel data methodology, we show that the immigrants' increasing pressure has a positive effect on labour productivity and wages and a negative effect on the job evolution of these manufacturing firms. In addition, both small and new firms are more sensitive to the pressures of immigrant inflow, while foreign market oriented firms report higher productivity levels and a less marked impact of immigration than their counterparts. We also present a set of instruments to control for endogeneity. It allows us to confirm the effect of local immigration flows on the performance of manufacturing firms.
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spelling doaj.art-45c0535d6f8448abb931626a5c16597a2022-12-21T21:49:45ZengAECRInvestigaciones Regionales - Journal of Regional Research1695-72532340-27172009-01-0115111137Immigration and Firm Performance: a city-level approachMercedes Teruel CarrizosaAgustí Segarra BlascoThis article analyses the effect of immigration flows on the growth and efficiency of manufacturing firms in Spanish cities. While most studies were focusing on the effect immigrants have on labour markets at an aggregate level, here, we argue that the impact of immigration on firm performance should not only be considered in terms of the labour market, but also in terms of how city's amenities can affect the performance of firms. Implementing a panel data methodology, we show that the immigrants' increasing pressure has a positive effect on labour productivity and wages and a negative effect on the job evolution of these manufacturing firms. In addition, both small and new firms are more sensitive to the pressures of immigrant inflow, while foreign market oriented firms report higher productivity levels and a less marked impact of immigration than their counterparts. We also present a set of instruments to control for endogeneity. It allows us to confirm the effect of local immigration flows on the performance of manufacturing firms.http://www.redalyc.org/articulo.oa?id=28911701006
spellingShingle Mercedes Teruel Carrizosa
Agustí Segarra Blasco
Immigration and Firm Performance: a city-level approach
Investigaciones Regionales - Journal of Regional Research
title Immigration and Firm Performance: a city-level approach
title_full Immigration and Firm Performance: a city-level approach
title_fullStr Immigration and Firm Performance: a city-level approach
title_full_unstemmed Immigration and Firm Performance: a city-level approach
title_short Immigration and Firm Performance: a city-level approach
title_sort immigration and firm performance a city level approach
url http://www.redalyc.org/articulo.oa?id=28911701006
work_keys_str_mv AT mercedesteruelcarrizosa immigrationandfirmperformanceacitylevelapproach
AT agustisegarrablasco immigrationandfirmperformanceacitylevelapproach