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From Borders to Boardrooms: Immigrants' Impact on Productivity

Author

Listed:
  • Parisa Ghasemi

    (University of Coimbra, Faculty of Economics)

  • Paulino Teixeira

    (University of Coimbra, Centre for Business and Economics and Faculty of Economics)

  • Carlos Carreira

    (University of Coimbra, Centre for Business and Economics and Faculty of Economics)

Abstract

In this study, we investigate the impact of the share of the foreign labor force on the labor productivity of firms operating in Portugal between 2010 and 2019, drawing on data from two main sources: linked employer-employee data from Quadros de Pessoal and firm-level balance sheet data from SCIE-Sistema de Contas Integradas das Empresas. The empirical analysis, conducted using Fixed Effects Two-Stage Least Squares, shows that immigrants do not contribute to the productivity of firms in which they are employed. We further investigate whether the productivity response to increased immigrant labor varies across different subsamples. Notably, low-productivity firms experience adverse effects when the share of immigrants rises, whereas smaller firms benefit from their presence. Furthermore, our analysis shows a positive and statistically significant impact on labor productivity from foreign-born workers with 5 to 9 years of formal education. This finding suggests that this particular demographic brings valuable skills and contributions to the workforce, enhancing overall productivity levels.

Suggested Citation

  • Parisa Ghasemi & Paulino Teixeira & Carlos Carreira, 2024. "From Borders to Boardrooms: Immigrants' Impact on Productivity," CeBER Working Papers 2024-01, Centre for Business and Economics Research (CeBER), University of Coimbra.
    • Handle: RePEc:gmf:papers:2024-01
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    More about this item

    Keywords

    Firms; Immigration; Low skilled Immigrants; Productivity;
    All these keywords.

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