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Absorption of Foreign Knowledge: Firms’ Benefits of Employing Immigrants

Author

Listed:
  • Jürgen Bitzer

    (University of Oldenburg, Department of Economics)

  • Erkan Gören

    (University of Oldenburg, Department of Economics)

  • Sanne Hiller

    (Ruhr University Bochum)

Abstract

This paper explores the question of how immigrant employees affect a firm’s capacity to absorb foreign knowledge. Using matched employer-employee data from Denmark for the years 1996 to 2009, we are able to show that non-Danish employees from technologically advanced countries contribute significantly to a firm’s total factor productivity (TFP) through their ability to access foreign knowledge. The empirical results suggest that the impact increases if the immigrants come from technologically advanced countries, are highly educated, and work in high-skilled positions.

Suggested Citation

  • Jürgen Bitzer & Erkan Gören & Sanne Hiller, 2015. "Absorption of Foreign Knowledge: Firms’ Benefits of Employing Immigrants," Working Papers V-386-15, University of Oldenburg, Department of Economics, revised Oct 2015.
    • Handle: RePEc:old:dpaper:386
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    References listed on IDEAS

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    Cited by:

    1. Bastos, Paulo & Silva, Joana, 2012. "Networks, firms, and trade," Journal of International Economics, Elsevier, vol. 87(2), pages 352-364.

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    More about this item

    Keywords

    R&D Spillovers; Absorptive Capacity; Firm-Level Analysis; Foreign Workers; Immigrants;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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