The labor market effects of immigration in developing countries: it matters not only who you are but also in which firm you work

Over the last decade, many countries have witnessed significant population outflows, including Afghanistan, Ukraine, Syria, and Venezuela, among others. Forcibly displaced migrants often relocate to neighboring countries where small firms play a crucial role in the labor market. The interplay between the formal and informal sectors is also a key characteristic of these labor markets. Because migrants often concentrate in small firms as informal workers, it becomes more relevant to study the labor market impacts of immigration while accounting for the role of firms in these contexts. However, papers that explore how firms interact with immigration effects in developing countries are scarce, partly due to data limitations. Having access to detailed firm information makes it possible to study whether most of the adjustments to immigration occur in small, less productive firms or in larger, more productive firms. Another question that can be addressed is whether certain categories of workers in small firms are more affected by immigration than others, and how...