Do Foreign Experts Increase the Productivity of Domestic Firms?

Nikolaj Malchow-Møller, Jakob Roland Munch, Jan Rose Skaksen

Research output: Working paperResearch

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.
Original languageEnglish
Place of PublicationBonn
PublisherIZA
Number of pages44
Publication statusPublished - 2011
SeriesIZA Discussion Paper
Number6001

Keywords

  • Foreign Experts
  • Export
  • Immigrants
  • Productivity
  • Difference-in-differences Matching

Cite this

Malchow-Møller, N., Munch, J. R., & Rose Skaksen, J. (2011). Do Foreign Experts Increase the Productivity of Domestic Firms? Bonn: IZA. IZA Discussion Paper, No. 6001
Malchow-Møller, Nikolaj ; Munch, Jakob Roland ; Rose Skaksen, Jan. / Do Foreign Experts Increase the Productivity of Domestic Firms?. Bonn : IZA, 2011. (IZA Discussion Paper; No. 6001).
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Malchow-Møller, N, Munch, JR & Rose Skaksen, J 2011 'Do Foreign Experts Increase the Productivity of Domestic Firms?' IZA, Bonn.

Do Foreign Experts Increase the Productivity of Domestic Firms? / Malchow-Møller, Nikolaj; Munch, Jakob Roland; Rose Skaksen, Jan.

Bonn : IZA, 2011.

Research output: Working paperResearch

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Malchow-Møller N, Munch JR, Rose Skaksen J. Do Foreign Experts Increase the Productivity of Domestic Firms? Bonn: IZA. 2011.