Immigration and Wages: The Role of Endogenous Worker Assignment to Firms 

Karin Mayr-Dorn (2019), Economics Letters.

Workforce composition may be endogenous to firm-specific productivity spillovers between different types of workers. I present a theoretical model of optimal worker assignment that delivers an empirically testable structural relationship between individual wages, workers’ group size, workforce diversity, and productivity spillovers in firms. 

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