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Research generally focuses on how immigration a¤ects native workers, while the impact of immigration on domestic …rms is often overlooked. This paper addresses this important omission by examining whether …rms respond to immigration by expanding their production activities within a city in order to utilize the abundant supply of low-skilled workers. Using data on immigration and the universe of establishments in U.S. cities, the results indicate that …rms respond to immigration at the extensive margin by increasing the number of establishments. Not surprisingly, immigration has a more positive impact on the number of establishments that are small in size and in relatively mobile, low-skill intensive industries.Additional evidence indicates that immigration has little impact on employment within existing establishments, the intensive margin, or on the number of establishments in service industries which may expand simply due to immigrant consumption.

This article examines the impact of corruption on the self‐selection of firms into domestic and export markets. A heterogeneous firm model predicts that corruption decreases the probability that a firm only sells domestically, increases the probability that a firm exports indirectly through an intermediary, and decreases the probability that a firm exports directly. The propositions of the model are tested using a comprehensive dataset of over 23,000 firms in 80 developing countries. The results confirm both the self‐selection of firms according to their productivity and the anticipated impact of corruption. This indicates that in developing countries where corruption is especially severe, intermediaries provide a crucial link to global markets. (JEL F1, O1)

Workers are becoming increasingly concerned about the impact that globalization has on their domestic labor market. While existing research typically focuses on the e¤ects on labor market outcomes such as wages and employment, we examine whether American workers respond to globalization by increasing their investment in human capital. Speci…cally, we measure the extent to which o¤shoring and immigration a¤ect enrollment at institutions of higher education. The results indicate that both o¤shoring and immigration increase enrollment at community colleges, particularly among older students. We conclude that workers in the U.S. are responding to o¤shoring and immigration by acquiring the skills necessary to compete in a global economy.Keywords: globalization, higher education, enrollment, o¤shoring, immigration JEL Codes: F16, I2, J24