Do Foreign Experts Increase the Productivity of Domestic Firms?

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningfagfællebedømt

While most countries welcome (and some even subsidize) 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 can affect the productivity and wages of domestic firms. Using matched worker–firm data from Denmark and a matching difference‐in‐differences approach, we then find that firms that hire foreign experts instead of domestic experts become more productive, in the sense that they pay higher wages to high‐skilled co‐workers.
TidsskriftScandinavian Journal of Economics
Udgave nummer2
Sider (fra-til)517-546
StatusUdgivet - 5 okt. 2017

ID: 241426749