Do Foreign Experts Increase the Productivity of Domestic Firms?

Nikolaj Malchow-Møller, Jakob Munch and Jan Skaksen

No 6001, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: While most countries welcome (and some even subsidise) 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 may impact on the productivity and wages of domestic firms. Using matched worker-firm data from Denmark and a difference-indifferences matching approach, we then find that firms that hire foreign experts – defined as employees eligible for reduced taxation under the Danish "Tax scheme for foreign researchers and key employees" – both become more productive (pay higher wages) and increase their exports of goods and services.

Keywords: productivity; immigrants; export; foreign experts; difference-in-differences matching (search for similar items in EconPapers)
JEL-codes: F22 J24 J31 J61 L2 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2011-10
New Economics Papers: this item is included in nep-eff and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Published - published in: Scandinavian Journal of Economics, 2019, 121, 517-546.

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Related works:
Journal Article: Do Foreign Experts Increase the Productivity of Domestic Firms? (2019)
Working Paper: Do Foreign Experts Increase the Productivity of Domestic Firms? (2011)
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