Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 16, 2023 erstellt
Beschreibung:
This paper provides causal evidence on impact of immigrant labor mobility frictions on business dynamism. An unexpected information-technology change to the Green Card process reduced inter-firm mobility for Indian and Chinese immigrants in October 2005. The shock impacted startups disproportionately, reducing Indian and Chinese mobility to startups by twice of incumbent firms. Distortions in immigrant labor availability decreased new startup formation and existing startup growth. Incumbent firms benefited from mobility restrictions with increases in daily returns and long-term Tobin’s Q. Slowdown in internal promotions for Indian and Chinese employees suggest monopsony power as an important driver for incumbent firm value