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Title:Do foreign experts increase the productivity of domestic firms? PDF Logo
Authors:Malchow-Møller, Nikolaj
Munch, Jakob R.
Skaksen, Jan Rose
Issue Date:2011
Series/Report no.:Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 6001
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.
Subjects:foreign experts
export
immigrants
productivity
difference-in-differences matching
JEL:F22
J24
J31
J61
L2
Persistent Identifier of the first edition:urn:nbn:de:101:1-201110263393
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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