The Abolition of Immigration Restrictions and the Performance of Firms and Workers: Evidence from Switzerland


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Date

2020-08

Publication Type

Working Paper

ETH Bibliography

yes

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Abstract

We study a reform that granted European cross-border workers free access to the Swiss labor market and had a stronger effect on regions close to the border. The greater availability of cross-border workers increased foreign employment substantially. Although many cross-border workers were highly educated, wages of highly educated natives increased. The reason is a simultaneous increase in labor demand: the reform increased the size, productivity, and innovation performance of skill-intensive incumbent firms and attracted new firms, creating opportunities for natives to pursue managerial jobs. These effects are mainly driven by firms that reported skill shortages before the reform.

Publication status

published

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Book title

Volume

486

Pages / Article No.

Publisher

KOF Swiss Economic Institute, ETH Zurich

Event

Edition / version

Methods

Software

Geographic location

Date collected

Date created

Subject

border region; cross-border workers; free movement of persons; firm performance; firm relocation; immigration policy; immigration restrictions; labor mobility; skilled immigration

Organisational unit

03716 - Sturm, Jan-Egbert / Sturm, Jan-Egbert check_circle
06330 - KOF FB Konjunktur / KOF Macroeconomic forecasting check_circle
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute check_circle

Notes

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