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Table 2.

Immigration and the Extensive Margin of Firm Offshoring

	Offshoring (Extensive Margin)
	OLS	Probit	OLS	OLS	IV	IV	IV
	(1)	(2)	(3)	(4)	(5)	(6)	(7)
Non-EU Immigrant Share $_{t - 1}$	−0.303^**	−0.206^**	−0.321^**	−0.349^**	−0.740^**	−0.785^**	−0.826^**
	(0.150)	(0.085)	(0.161)	(0.171)	(0.267)	(0.302)	(0.335)
Labor Productivity $_{t - 1}$				0.015^***			0.015^***
				(0.002)			(0.002)
Capital Intensity $_{t - 1}$				0.065^**			0.067^**
				(0.028)			(0.028)
Foreign $_{t - 1}$				0.002^*			0.001
				(0.001)			(0.001)
Industry, Municipality and Year Fixed Effects	yes	yes	yes	yes	yes	yes	yes
Firm Fixed Effects	no	no	yes	yes	no	yes	yes
Firm Size Dummies and	no	no	no	yes	no	no	yes
Multi-establishment Dummy
Workforce Characteristics	no	no	no	yes	no	no	yes
Mean $Y$	0.130	0.130	0.130	0.130	0.130	0.130	0.130
First Stage: KP $F$ -statistic on Instrument	—	—	—	—	13.999	12.989	12.643
First Stage: Non-EU Img IV Coeff.	—	—	—	—	0.248^*** (0.068)	0.202^*** (0.067)	0.179^*** (0.064)
$R^{2}$ /pseudo- $R^{2}$	0.254	0.375	0.763	0.763	0.254	0.763	0.764
$N$	439,627	439,627	439,627	439,627	439,627	439,627	439,627

	Offshoring (Extensive Margin)
	OLS	Probit	OLS	OLS	IV	IV	IV
	(1)	(2)	(3)	(4)	(5)	(6)	(7)
Non-EU Immigrant Share $_{t - 1}$	−0.303^**	−0.206^**	−0.321^**	−0.349^**	−0.740^**	−0.785^**	−0.826^**
	(0.150)	(0.085)	(0.161)	(0.171)	(0.267)	(0.302)	(0.335)
Labor Productivity $_{t - 1}$				0.015^***			0.015^***
				(0.002)			(0.002)
Capital Intensity $_{t - 1}$				0.065^**			0.067^**
				(0.028)			(0.028)
Foreign $_{t - 1}$				0.002^*			0.001
				(0.001)			(0.001)
Industry, Municipality and Year Fixed Effects	yes	yes	yes	yes	yes	yes	yes
Firm Fixed Effects	no	no	yes	yes	no	yes	yes
Firm Size Dummies and	no	no	no	yes	no	no	yes
Multi-establishment Dummy
Workforce Characteristics	no	no	no	yes	no	no	yes
Mean $Y$	0.130	0.130	0.130	0.130	0.130	0.130	0.130
First Stage: KP $F$ -statistic on Instrument	—	—	—	—	13.999	12.989	12.643
First Stage: Non-EU Img IV Coeff.	—	—	—	—	0.248^*** (0.068)	0.202^*** (0.067)	0.179^*** (0.064)
$R^{2}$ /pseudo- $R^{2}$	0.254	0.375	0.763	0.763	0.254	0.763	0.764
$N$	439,627	439,627	439,627	439,627	439,627	439,627	439,627

The dependent variable is a binary variable indicating whether the firm offshores (narrow definition). The non-EU immigrant share $_{t - 1}$ is the lagged share of non-EU foreign workers within the municipality. Workforce composition characteristics include the lagged share of male workers and average years of education, age, tenure, and work experience. In column 2, we report the marginal effect of the non-EU immigrant share $_{t - 1}$ calculated at the mean of the independent variables. Robust standard errors clustered at the municipality level in parentheses. Significance levels: ^***1%, ^**5%, and ^*10%.

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