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Innovation and immigration — Insights from a placement policy

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  • Jahn, Vera
  • Steinhardt, Max Friedrich

Abstract

We examine the impact of immigration on innovation by exploiting a placement policy for immigrants in Germany. This allows us to overcome the potential bias of endogenous location decisions. Although the majority of inflows was unskilled, we do not find any evidence of a negative impact on innovations. Instead, our panel estimates suggest that immigration had no or even a positive impact on innovations.

Suggested Citation

  • Jahn, Vera & Steinhardt, Max Friedrich, 2016. "Innovation and immigration — Insights from a placement policy," Economics Letters, Elsevier, vol. 146(C), pages 116-119.
    • Handle: RePEc:eee:ecolet:v:146:y:2016:i:c:p:116-119
    DOI: 10.1016/j.econlet.2016.07.033
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    References listed on IDEAS

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    1. Jennifer Hunt & Marjolaine Gauthier-Loiselle, 2010. "How Much Does Immigration Boost Innovation?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(2), pages 31-56, April.
    2. Albrecht Glitz, 2012. "The Labor Market Impact of Immigration: A Quasi-Experiment Exploiting Immigrant Location Rules in Germany," Journal of Labor Economics, University of Chicago Press, vol. 30(1), pages 175-213.
    3. Bratti, Massimiliano & Conti, Chiara, 2014. "The Effect of (Mostly Unskilled) Immigration on the Innovation of Italian Regions," IZA Discussion Papers 7922, Institute of Labor Economics (IZA).
    4. Piopiunik, Marc & Ruhose, Jens, 2017. "Immigration, regional conditions, and crime: Evidence from an allocation policy in Germany," European Economic Review, Elsevier, vol. 92(C), pages 258-282.
    5. Gnanaraj Chellaraj & Keith E. Maskus & Aaditya Mattoo, 2008. "The Contribution of International Graduate Students to US Innovation," Review of International Economics, Wiley Blackwell, vol. 16(3), pages 444-462, August.
    6. Neil Lee, 2015. "Migrant and ethnic diversity, cities and innovation: Firm effects or city effects?," Journal of Economic Geography, Oxford University Press, vol. 15(4), pages 769-796.
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    Cited by:

    1. Rania Gihleb & Osea Giuntella & Luca Stella, 2022. "Exposure to Past Immigration Waves and Attitudes toward Newcomers," NBER Working Papers 30473, National Bureau of Economic Research, Inc.
    2. Alexander M. Danzer & Carsten Feuerbaum & Fabian Gaessler, 2020. "Labor Supply and Automation Innovation," Working Papers 198, Bavarian Graduate Program in Economics (BGPE).
    3. Wei, Hao & Yuan, Ran & Zhao, Laixun, 2020. "International talent inflow and R&D investment: Firm-level evidence from China," Economic Modelling, Elsevier, vol. 89(C), pages 32-42.
    4. Olof Ejermo & Yannu Zheng, 2018. "Liberalization of European migration and the immigration of skilled people to Sweden," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-25, December.
    5. Massimiliano Bratti & Luca De Benedictis & Gianluca Santoni, 2020. "Immigrant entrepreneurs, diasporas, and exports," Journal of Regional Science, Wiley Blackwell, vol. 60(2), pages 249-272, March.
    6. Katharina Candel-Haug & Alexander Cuntz & Oliver Falck, 2018. "Immigrants' Contribution to Innovativeness: Evidence from a Non-Selective Immigration Country," CESifo Working Paper Series 7409, CESifo.
    7. Beckmann, Klaus B., 2017. "Bounded rationality in differential games," Working Paper 178/2017, Helmut Schmidt University, Hamburg.
    8. Bantle, Melissa & Muijs, Matthias, 2018. "A new price test in geographic market definition – an application to german retail gasoline market," Working Paper 180/2018, Helmut Schmidt University, Hamburg.

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    More about this item

    Keywords

    Innovation; Immigration; Quasi-experimental setting;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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