Malchow-Møller, Nikolaj Munch, Jakob R. Skaksen, Jan Rose
Year of Publication:
Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 6001
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.