The use of immigrant labor in businesses within the accommodation sector correlates with reduced wage growth and increased profitability. This result suggests that businesses substitute their workforce towards cheaper labor without experiencing productivity losses, thus inducing increased profitability. The correlation between use of immigrant labor and reduced wage growth increases with company size. The same patterns are found in the restaurants and bars sector. The characteristics of companies and industries influence the impact of immigration on productivity and wage growth. How business adaptation to the labor supply of immigrant workers is an interesting topic for further research.
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