Table 2.

. | 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) |

$R2$/pseudo-$R2$ | 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) |

$R2$/pseudo-$R2$ | 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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