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Do Foreign Experts Increase the Productivity of Domestic Firms?

Nikolaj Malchow-Møller (), Jakob Munch and Jan Skaksen

No 2011014, Norface Discussion Paper Series from Norface Research Programme on Migration, Department of Economics, University College London

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-in-differences 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: Foreign experts; export; immigrants; productivity; difference-in-differences matching (search for similar items in EconPapers)
JEL-codes: F22 J24 J31 J61 L2 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff, nep-int, nep-lma and nep-mig
Date: 2011-09
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Journal Article: Do Foreign Experts Increase the Productivity of Domestic Firms? (2019) Downloads
Working Paper: Do Foreign Experts Increase the Productivity of Domestic Firms? (2011) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:nor:wpaper:2011014

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