. Increased productivity allows producing a given quantity wit less labour. This is the displacement effect of technical progress …

Empirical evidence for the US shows that migrants increase the productivity of regions. To explain the impact of … migrants on the average firm productivity we construct a general equilibrium model with monopolistic competition a la Melitz … (2003). We consider heterogeneous firms with different productivity levels and imperfect substitutability between migrants …

with a monopolistic competition framework a la Dixit-Stiglitz considering heterogeneous firms with different productivity … run equilibrium only those firms with survive in the market which have a sufficiently high productivity level or can … compensate their lower productivity level by wage cost advantages. We show that the increase of productivity might be explained …