Only human? Immigration and firm productivity in Britain

Hall, Tessa and Manning, Alan ORCID: 0000-0002-7884-3580 (2024) Only human? Immigration and firm productivity in Britain. CEP Discussion Papers (CEPDP2060). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

This paper estimates the impact of migration on productivity by estimating production functions for British firms. We find that much of the apparent higher productivity of migrants is the result of sorting across areas, industries, and firms. If we include firm fixed effects, the estimated productivity advantage of migrants over locals is not significantly different from zero. One possible interpretation of our results is that migrants and locals with similar skills are equally productive; there is nothing distinctive about migrants. However, since productivity estimates are imprecise after controlling for firm fixed effects, we also can't reject the hypothesis that migrants and locals differ in their productivity.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2024 The Author(s)
Divisions:	Centre for Economic Performance Economics
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor
JEL classification:	J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J61 - Geographic Labor Mobility; Immigrant Workers
Date Deposited:	06 Feb 2025 13:48
Last Modified:	06 Feb 2025 13:48
URI:	http://eprints.lse.ac.uk/id/eprint/126776

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