The Heterogeneity of Immigrants, Host Countries' Income and Productivity: A Channel Accounting Approach

The impact of immigration on output and its components: a sectoral analysis for Italy at regional level

“…Compared with previous results, our findings partly confirm those of Peri (2012) and of Aleksynska and Tritah (2015). In line with them, we find a positive effect of the share of immigrants' workers on value added per worker and on total factor productivity.…”

“…We have followed the channel output decomposition approach advocated by Aleksynska and Tritah (2015), Peri (2012) and Ortega and Peri (2009) by means of which the effect of immigration is measured with respect to per capita value added and to its components. We have constructed a three dimensional panel dataset for the main Italian sectors at regional level, through time (2008)(2009)(2010)(2011).…”

“…One of these is the so called channel output decomposition approach followed by Aleksynska and Tritah (2015), Peri (2012) and Ortega and Peri (2009), by means of which the effect of immigration is measured with respect to per capita output (or value added as in the present study) and to all its components. Aleksynska and Tritah (2015) study the impact of migration in twenty OECD countries during the 1960-2005 time period and find that immigrants have a positive effect on income that works through total factor productivity, whereas the capital output ratio is not affected by immigrants' share. The authors claim that the positive effect is consistent with the literature emphasizing the beneficial effects of workforce diversity on productivity suggested by Alesina et al (2013) and with the "immigrants greasing the wheels of host countries' labor markets" hypothesis advocated by Borjas (2001).…”

Misallocation of the Immigrant Workforce: Aggregate Productivity Effects for the Host Country

“…In broader terms, our paper aims to enrich the migration literature that explores macroeconomic effects in the host country beyond the usual short-term impacts on the labor market outcomes for natives. Particularly, we contribute to a body of work looking at the effects of immigration on aggregate productivity (Peri, 2012;Lewis, 2013;Hornung, 2014;Ortega and Peri, 2014;Aleksynska and Tritah, 2015). This literature usually highlights channels such as changes in the demographic composition of the workforce, shifts in firms' production functions, and the boost to innovation and total factor productivity growth; see Nathan (2014) for a review.…”

Immigrants' contribution to value added is often similar to their employment share: Immigrants estimated share of value added and of the employed

“…3. This can be shown on the basis of a standard Cobb-Douglas production function (Aleksynska and Tritah, 2015;Jaumotte, koloskova and Saxena, 2016):…”