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
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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.
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published
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Journal / series
Volume
486
Pages / Article No.
Publisher
KOF Swiss Economic Institute, ETH Zurich
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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
06330 - KOF FB Konjunktur / KOF Macroeconomic forecasting
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
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Is part of: 10.3929/ethz-b-000448645