NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Jan Ruffner

KOF Swiss Economic Institute
ETH Zurich
Leonhardstrasse 21
CH–8092 Zürich
Switzerland

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: ETH Zurich

NBER Working Papers and Publications

November 2018The Abolition of Immigration Restrictions and the Performance of Firms and Workers: Evidence from Switzerland
with Andreas Beerli, Michael Siegenthaler, Giovanni Peri: w25302
We study a reform that granted European cross-border workers free access to the Swiss labor market. Our Differences-in-Differences estimations leverage the fact that regions close to the border were affected more intensely and earlier. The greater availability of cross-border workers increased their employment but also wages and possibly employment of highly educated native workers although the new cross-border workers were also highly educated. The reason is a simultaneous increase in labor demand in skill-intensive firms: the reform increased the size, productivity, innovation performance of some incumbent firms, attracted new firms, and created opportunities for natives to pursue managerial jobs.
 
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