Conference Agenda
Please note that all times are shown in the time zone of the conference. The current conference time is: 15th Sept 2026, 08:54:17am CEST
|
Daily Overview |
| Session | |
|
CF 08: Politics and Firm Behavior: Polarization, Geopolitical Risk, and Lobbying Location: LR M1.2 (Floor 1) Session Chair: Frederico Belo, INSEAD | |
| Presentation 1 | |
ID: 979
Foreign Geopolitical Risk and U.S. Firm Productivity: The Role of Immigrant Labor 1: Auburn University; 2: University of Southern California We demonstrate that foreign geopolitical risk can affect U.S. firm productivity through their immigrant employees. Using confidential U.S. Census employee-employer matched microdata, we measure a firm’s labor exposure to foreign geopolitical risk (FGPR) based on geopolitical shocks to the origin countries of its immigrant employees. FGPR significantly boosts firm labor productivity, profitability, and investment. The effect appears causal, operates on the intensive margin rather than through labor turnover, and is robust among firms without international trade activities. Examining the mechanism at the worker level, we find that immigrants increase their working hours when origin-country GPR rises, which positively spills over to their domestic coworkers’ labor supply. These effects are consistent with two underlying forces: a reduced option value of return migration and increased remittance motives when origin-country GPR rises. Overall, our study highlights a novel labor channel through which foreign GPR pressures immigrant employees but benefits their employing firms
| |
