The Impact of Immigration on Firm-Level Offshoring

William Olney and Dario Pozzoli

The Review of Economics and Statistics, 2021, vol. 103, issue 1, 177-195

Abstract: This paper studies the relationship between immigration and offshoring by examining whether an influx of foreign workers reduces the need for firms to relocate jobs abroad. Using a Danish natural experiment and their employer-employee matched data set covering the universe of workers and firms (1995–2011), our findings show that an exogenous influx of immigrants into a municipality reduces firm-level offshoring at both the extensive and intensive margins. While the multilateral relationship is negative, a subsequent bilateral analysis shows that immigrants have connections in their country of origin that increase the likelihood that firms offshore to that particular foreign country.

Date: 2021
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Related works:
Working Paper: The Impact of Immigration on Firm Level Offshoring (2018)
Working Paper: The Impact of Immigration on Firm-Level Offshoring (2018)
Working Paper: The Impact of Immigration on Firm-Level Offshoring (2018)
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