{"id":34219,"date":"2026-08-18T14:21:38","date_gmt":"2026-08-18T12:21:38","guid":{"rendered":"https:\/\/francescoeconomy.org\/immigration-and-economic-growth-evidence-from-chile\/"},"modified":"2026-08-18T14:24:25","modified_gmt":"2026-08-18T12:24:25","slug":"immigration-and-economic-growth-evidence-from-chile","status":"publish","type":"post","link":"https:\/\/francescoeconomy.org\/it\/immigration-and-economic-growth-evidence-from-chile\/","title":{"rendered":"Immigration and Economic Growth: Evidence from Chile"},"content":{"rendered":"

Immigration and Economic Growth:
\nEvidence from Chile<\/h1>\n<\/div>

by Alessandra Anna Palazzo<\/p>\n<\/div><\/div><\/div>

Migration is one of the most important social and economic challenges of our time. Around the\u00a0 world, millions of people leave their homes in search of safety, stability, and opportunities to build\u00a0 a better future. How host countries respond to these movements of people has important\u00a0 consequences not only for migrants themselves, but also for the societies and economies that\u00a0 receive them.\u00a0<\/span><\/p>\n

My research studies the experience of Chile, a country that received one of the largest migration\u00a0 waves in Latin America during the last decade. Between 2015 and 2019, nearly one million\u00a0 immigrants arrived in Chile, many fleeing the humanitarian and economic crises in Venezuela and\u00a0 Haiti. In just a few years, immigration transformed the country’s labor market and changed the\u00a0 composition of the workforce in many firms.<\/span><\/p>\n<\/div><\/div><\/div>

<\/span><\/div><\/div><\/div>

Public debates about immigration often focus on whether migrants take jobs from native workers\u00a0 or affect wages. My research asks a different question: how does immigration influence the way\u00a0 firms invest and grow?\u00a0<\/span><\/p>\n

To answer this question, I use detailed administrative data that links workers and firms across\u00a0 Chile. This allows me to study how firms changed their investment decisions as they hired more\u00a0 immigrant workers and as the composition of their workforce evolved.<\/span><\/p>\n

The findings suggest that immigration can be an important source of economic growth. Firms that\u00a0 gained access to more skilled immigrant workers increased their investment in machinery,\u00a0 equipment, and other productive assets. In other words, immigration did not simply provide\u00a0 additional labor. It encouraged firms to expand, modernize, and invest in their future.<\/span><\/p>\n<\/div><\/div><\/div>

A key lesson from the study is that skills matter, but so does integration. Immigrants bring\u00a0 knowledge, experiences, and perspectives acquired in different countries and institutions. When\u00a0 firms are able to combine these talents with those of native workers, they can become more\u00a0 productive and innovative. The benefits emerge not because immigrants replace native workers,\u00a0 but because people with different backgrounds are able to contribute and work together.\u00a0<\/span><\/p>\n

This insight is particularly relevant today. Around the world, many migrants face barriers that\u00a0 prevent them from fully participating in economic life. Professional qualifications may not be\u00a0 recognized, language barriers can limit opportunities, and workers are often employed in jobs that\u00a0 do not reflect their skills and experience. When this happens, societies fail to benefit from the\u00a0 talents that migrants bring with them.\u00a0<\/span><\/p>\n

The Chilean experience shows that welcoming immigrants and supporting their integration can\u00a0 generate benefits that extend beyond the individuals directly involved. When migrants are able to\u00a0 use their skills, firms invest more, productive capacity grows, and new opportunities are created.\u00a0 Economic development and social inclusion can therefore reinforce one another.\u00a0<\/span><\/p>\n

This message resonates with the vision of the Economy of Francesco, which calls for an economy\u00a0 centered on people, participation, and the common good. Migration is often discussed as a\u00a0<\/span><\/p>\n

challenge to be managed, but it can also be understood as an opportunity to build more inclusive\u00a0 and dynamic societies. The evidence from Chile suggests that when people are given the chance\u00a0 to contribute according to their talents, everyone benefits.\u00a0<\/span><\/p>\n

Ultimately, this research highlights a simple but important idea: immigrants are not only workers\u00a0 entering a labor market. They are individuals with skills, aspirations, and the capacity to contribute\u00a0 to the communities that receive them. Creating the conditions for their successful integration is not\u00a0 only a matter of social justice, it is also an investment in a more productive, innovative, and\u00a0 inclusive economy.<\/span><\/p>\n<\/div><\/div><\/div>

Alessandra Anna Palazzo<\/strong><\/p>\n

2025-2026 EoF Academy Fellow<\/p>\n<\/div><\/div><\/div>

<\/span><\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"

Public debates about immigration often focus on whether migrants take jobs from native workers or affect wages. 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