Showing results 1 to 2 of approximately 2.(refine search)
Firm Heterogeneity and the Impact of Immigration: Evidence from German Establishments
We use a detailed establishment-level dataset from Germany to document a new dimension of ﬁrm heterogeneity: large ﬁrms spend a higher share of their wage bill on immigrants than small ﬁrms. We show analytically that ignoring this heterogeneity in the immigrant share leads to biased estimates of the welfare gains from immigration. To do so, we set up and estimate a model where heterogeneous ﬁrms choose their immigrant share and then use it to quantify the welfare effects of an increase in the number of immigrants in Germany. Two new adjustment mechanisms arise under ﬁrm ...