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Table 1.
Presample Trends and Long-Run Changes in Immigration and Offshoring
Δ Ext. Margin Offshoring (1993–1995)Δ Int. Margin Offshoring (1993–1995)Δ Employment (1993–1995)Δ Hourly Wages (1993–1995)
(1)(2)(3)(4)
Δ Non-EU Immigration Share IV (1995–2011) 0.035 2.374 −0.111 −0.518 
 (0.020) (1.927) (0.382) (0.359) 
N 97 97 97 97 
R2 0.722 0.243 0.213 0.213 
 Δ Share of Non-EU Immigration (1995–2011) Δ Share of EU Immigration (1995–2011) Δ Ext. Margin Offshoring (1995–2011) Δ Int. Margin Offshoring (1995–2011) 
 (5) (6) (7) (8) 
Δ Non-EU Immigration Share IV (1995–2011) 0.220** −0.015 −0.015** −1.511* 
 (0.104) (0.016) (0.006) (0.801) 
N 97 97 97 97 
R2 0.731 0.270 0.801 0.293 
Δ Ext. Margin Offshoring (1993–1995)Δ Int. Margin Offshoring (1993–1995)Δ Employment (1993–1995)Δ Hourly Wages (1993–1995)
(1)(2)(3)(4)
Δ Non-EU Immigration Share IV (1995–2011) 0.035 2.374 −0.111 −0.518 
 (0.020) (1.927) (0.382) (0.359) 
N 97 97 97 97 
R2 0.722 0.243 0.213 0.213 
 Δ Share of Non-EU Immigration (1995–2011) Δ Share of EU Immigration (1995–2011) Δ Ext. Margin Offshoring (1995–2011) Δ Int. Margin Offshoring (1995–2011) 
 (5) (6) (7) (8) 
Δ Non-EU Immigration Share IV (1995–2011) 0.220** −0.015 −0.015** −1.511* 
 (0.104) (0.016) (0.006) (0.801) 
N 97 97 97 97 
R2 0.731 0.270 0.801 0.293 

In columns 1 and 2, the dependent variable is the presample trend (i.e., the change from 1993 to 1995) in offshoring at the municipality level. In columns 3 and 4, the dependent variable is the presample trend (i.e., the change from 1993 to 1995) in the log of employment and hourly wages at the municipality level. In column 5, the dependent variable is the long-run change (1995 to 2011) in the share of non-EU immigrants at the municipality level, while in column 6, it is the long-run change in the share of EU immigrants. In columns 7 and 8, the dependent variable is the long-run change in offshoring (1995 to 2011) at the municipality level. The explanatory variable in all regressions is the long-run change (1995 to 2011) in the immigration instrument. Regressions also include 1995 municipality averages of all of the other control variables (including labor productivity, capital stock, foreign ownership, a multiestablishment dummy, size dummies, male, age, work experience, tenure, and years of education). Regressions are weighted by the local labor force in 1995. Robust standard errors in parentheses. Significance levels: ***1%, **5%, and *10%.

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