Too Constrained to Grow. Analysis of Firms’ Response to the Alleviation of Skill Shortage
Event details
| Date | 22.06.2020 |
| Hour | 17:00 |
| Speaker | Sara Signorelli (Paris School of Economics) |
| Location |
Zoom
|
| Category | Conferences - Seminars |
Sara Signorelli (Paris School of Economics)
"Too Constrained to Grow. Analysis of Firms’ Response to the Alleviation of Skill Shortages" (video)
Discussant: Kirk Doran (University of Notre Dame)
Abstract
Skill shortages are a growing concern in the context of rapid technological change. How-ever, little evidence exists on what is the actual cost associated with them and on theeffectiveness of potential solutions. This paper evaluates whether a French policy encourag-ing immigration of skilled workers with highly-demanded competencies had a positive effecton the output and productivity of firms that were constrained by the lack of native candi-dates. The analysis is based on exhaustive administrative data and relies on a difference-in-differences approach. Results show that firms operating in the most constrained locallabor markets react to the reform by hiring more workers in tight occupations. This leadsto growth in their revenues and value added as well as generating some crowding-in of othertypes of employment. The effect is stronger in departments with lower job to job mobility,suggesting that high-skill migration can be an effective tool to relax skill constraints in theless dynamic areas of the country, where native workers are reluctant to move.
Keywords: Skill Shortages, Firm Output, Immigration, France
EPFL Virtual Innovation Seminar
EVIS is a bi-weekly virtual seminar series focusing on Science, Technology and Innovation topics studied through the lens of Economics, Entrepreneurship, Strategy and Finance.
"Too Constrained to Grow. Analysis of Firms’ Response to the Alleviation of Skill Shortages" (video)
Discussant: Kirk Doran (University of Notre Dame)
Abstract
Skill shortages are a growing concern in the context of rapid technological change. How-ever, little evidence exists on what is the actual cost associated with them and on theeffectiveness of potential solutions. This paper evaluates whether a French policy encourag-ing immigration of skilled workers with highly-demanded competencies had a positive effecton the output and productivity of firms that were constrained by the lack of native candi-dates. The analysis is based on exhaustive administrative data and relies on a difference-in-differences approach. Results show that firms operating in the most constrained locallabor markets react to the reform by hiring more workers in tight occupations. This leadsto growth in their revenues and value added as well as generating some crowding-in of othertypes of employment. The effect is stronger in departments with lower job to job mobility,suggesting that high-skill migration can be an effective tool to relax skill constraints in theless dynamic areas of the country, where native workers are reluctant to move.
Keywords: Skill Shortages, Firm Output, Immigration, France
EPFL Virtual Innovation Seminar
EVIS is a bi-weekly virtual seminar series focusing on Science, Technology and Innovation topics studied through the lens of Economics, Entrepreneurship, Strategy and Finance.
Practical information
- General public
- Free