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Immigration and Firm-Worker Matching

Author

Listed:
  • Gianluca Orefice

    (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

  • Giovanni Peri

    (Department of Economics - UC San Diego - University of California [San Diego] - UC - University of California)

Abstract

Positive assortative matching increases both the wages of more productive workers and wage dispersion. We study the effect of immigration on positive assortative matching using French employer-employee data from 1995 to 2005. We find that increases in the share of immigrants, driven by historical networks across local labor markets, generated stronger positive assortative matching between workers and firms. We present evidence suggesting that this effect was associated to higher wages for more productive workers and that the findings are consistent with increased workers' screening by firms.

Suggested Citation

  • Gianluca Orefice & Giovanni Peri, 2024. "Immigration and Firm-Worker Matching," Post-Print hal-04929172, HAL.
    • Handle: RePEc:hal:journl:hal-04929172
    as

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