The Impact of Immigration on Firm-level Offshoring

William W. Olney, Dario Pozzoli

Publikation: Working paperForskning

4 Downloads (Pure)

Resumé

This paper studies the relationship between immigration and offshoring by examining whether an in ux of foreign workers reduces the need for firms to relocate jobs abroad. We exploit a Danish quasi-natural experiment in which immigrants were randomly allocated to municipalities using a refugee dispersal policy and we use the Danish employer-employee matched data set covering the universe of workers and firms over the period 1995-2011. Our findings show that an exogenous in ux of immigrants into a municipality reduces firm-level offshoring at both the extensive and intensive margins. The fact that immigration and offshoring are substitutes has important policy implications, since restrictions on one may encourage the other. 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.
OriginalsprogEngelsk
Udgivelses stedFrederiksberg
UdgiverCopenhagen Business School, CBS
Antal sider50
StatusUdgivet - 2018
NavnWorking Paper / Department of Economics. Copenhagen Business School
Nummer3-2018

Emneord

  • Immigration
  • Offshoring

Citer dette

Olney, W. W., & Pozzoli, D. (2018). The Impact of Immigration on Firm-level Offshoring. Frederiksberg: Copenhagen Business School, CBS. Working Paper / Department of Economics. Copenhagen Business School, Nr. 3-2018
Olney, William W. ; Pozzoli, Dario . / The Impact of Immigration on Firm-level Offshoring. Frederiksberg : Copenhagen Business School, CBS, 2018. (Working Paper / Department of Economics. Copenhagen Business School; Nr. 3-2018).
@techreport{2fa9528d4f344fc2ae901ddb4d7013eb,
title = "The Impact of Immigration on Firm-level Offshoring",
abstract = "This paper studies the relationship between immigration and offshoring by examining whether an in ux of foreign workers reduces the need for firms to relocate jobs abroad. We exploit a Danish quasi-natural experiment in which immigrants were randomly allocated to municipalities using a refugee dispersal policy and we use the Danish employer-employee matched data set covering the universe of workers and firms over the period 1995-2011. Our findings show that an exogenous in ux of immigrants into a municipality reduces firm-level offshoring at both the extensive and intensive margins. The fact that immigration and offshoring are substitutes has important policy implications, since restrictions on one may encourage the other. 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.",
keywords = "Immigration, Offshoring, Immigration, Offshoring",
author = "Olney, {William W.} and Dario Pozzoli",
year = "2018",
language = "English",
publisher = "Copenhagen Business School, CBS",
address = "Denmark",
type = "WorkingPaper",
institution = "Copenhagen Business School, CBS",

}

Olney, WW & Pozzoli, D 2018 'The Impact of Immigration on Firm-level Offshoring' Copenhagen Business School, CBS, Frederiksberg.

The Impact of Immigration on Firm-level Offshoring. / Olney, William W.; Pozzoli, Dario .

Frederiksberg : Copenhagen Business School, CBS, 2018.

Publikation: Working paperForskning

TY - UNPB

T1 - The Impact of Immigration on Firm-level Offshoring

AU - Olney, William W.

AU - Pozzoli, Dario

PY - 2018

Y1 - 2018

N2 - This paper studies the relationship between immigration and offshoring by examining whether an in ux of foreign workers reduces the need for firms to relocate jobs abroad. We exploit a Danish quasi-natural experiment in which immigrants were randomly allocated to municipalities using a refugee dispersal policy and we use the Danish employer-employee matched data set covering the universe of workers and firms over the period 1995-2011. Our findings show that an exogenous in ux of immigrants into a municipality reduces firm-level offshoring at both the extensive and intensive margins. The fact that immigration and offshoring are substitutes has important policy implications, since restrictions on one may encourage the other. 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.

AB - This paper studies the relationship between immigration and offshoring by examining whether an in ux of foreign workers reduces the need for firms to relocate jobs abroad. We exploit a Danish quasi-natural experiment in which immigrants were randomly allocated to municipalities using a refugee dispersal policy and we use the Danish employer-employee matched data set covering the universe of workers and firms over the period 1995-2011. Our findings show that an exogenous in ux of immigrants into a municipality reduces firm-level offshoring at both the extensive and intensive margins. The fact that immigration and offshoring are substitutes has important policy implications, since restrictions on one may encourage the other. 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.

KW - Immigration

KW - Offshoring

KW - Immigration

KW - Offshoring

M3 - Working paper

BT - The Impact of Immigration on Firm-level Offshoring

PB - Copenhagen Business School, CBS

CY - Frederiksberg

ER -

Olney WW, Pozzoli D. The Impact of Immigration on Firm-level Offshoring. Frederiksberg: Copenhagen Business School, CBS. 2018.