Do Foreign Experts Increase the Productivity of Domestic Firms?

Nikolaj Malchow‐Møller, Jakob Munch and Jan Rose Skaksen
Authors registered in the RePEc Author Service: Nikolaj Malchow-Møller

Scandinavian Journal of Economics, 2019, vol. 121, issue 2, 517-546

Abstract: While most countries welcome (and some even subsidize) high‐skilled immigrants, there is very limited evidence of their importance for domestic firms. To guide our empirical analysis, we first set up a simple theoretical model to show how foreign experts can affect the productivity and wages of domestic firms. Using matched worker–firm data from Denmark and a matching difference‐in‐differences approach, we then find that firms that hire foreign experts instead of domestic experts become more productive, in the sense that they pay higher wages to high‐skilled co‐workers.

Date: 2019
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Citations: View citations in EconPapers (4)

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https://doi.org/10.1111/sjoe.12286

Related works:
Working Paper: Do Foreign Experts Increase the Productivity of Domestic Firms? (2011)
Working Paper: Do Foreign Experts Increase the Productivity of Domestic Firms? (2011)
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