Labour migration and firm behaviour

Author: Cristina Bratu, And Hans Grönqvist, And
Dnr: 122/2018

In December 2008, Sweden introduced an entirely employer-driven labour immigration system for non-European workers. Recruiting firms took the centre stage as unions fell out of favour. We study the effect of this change on firm size and the sum of wages paid at the firm. Using a difference-in-difference approach on firms in more vs. less affected sectors, we evaluate how hiring foreign workers affects firm outcomes, as well as the underlying mechanisms of these effects.