The heterogeneous effect of immigration on firm performance

This paper focuses on the heterogeneity of the effects of immigration across firms depending on the capital intensity of the firm. We build a model that allows us to capture this heterogeneity unambiguously. We use data from Turkey, where refugees from Syria have reached 4.5\% of the Turkish population in only nine years. Our empirical analysis is based on IV and Difference-in-Differences (Diff-in-Diff) methodologies. We find that immigration favors labor-intensive firms. The effect on capital-intensive firms is negative in sign but does not reach statistical significance. J.E.L. codes: F14, F22