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Table 3.
Immigration and the Intensive Margin of Firm Offshoring
Offshoring (Intensive Margin)
OLSOLSOLSIVIVIV
(1)(2)(3)(4)(5)(6)
Non-EU Immigrant Sharet-1 −7.085** −6.777** −6.249** −14.212** −13.177** −12.064** 
 (3.437) (3.143) (3.032) (7.176) (6.650) (5.339) 
Labor Productivityt-1   0.015***   0.015*** 
   (0.002)   (0.002) 
Capital Intensityt-1   0.065**   0.067** 
   (0.028)   (0.028) 
Foreignt-1   0.002*   0.001 
   (0.001)   (0.001) 
Industry, Municipality and Year Fixed Effects yes yes yes yes yes yes 
Firm Fixed Effects no yes yes no yes yes 
Firm Size Dummies and no no yes no no yes 
Multi-establishment Dummy 
Workforce Characteristics no no yes no no yes 
Mean Y 11.409 11.409 11.409 11.409 11.409 11.409 
First Stage: KP F-statistic on Instrument — — — 9.227 8.765 7.829 
First Stage: Non-EU Img IV Coeff. — — — 0.191*** (0.057) 0.189** (0.086) 0.186** (0.083) 
R2 0.047 0.569 0.570 0.046 0.568 0.569 
N 59,399 59,399 59,399 59,399 59,399 59,399 
Offshoring (Intensive Margin)
OLSOLSOLSIVIVIV
(1)(2)(3)(4)(5)(6)
Non-EU Immigrant Sharet-1 −7.085** −6.777** −6.249** −14.212** −13.177** −12.064** 
 (3.437) (3.143) (3.032) (7.176) (6.650) (5.339) 
Labor Productivityt-1   0.015***   0.015*** 
   (0.002)   (0.002) 
Capital Intensityt-1   0.065**   0.067** 
   (0.028)   (0.028) 
Foreignt-1   0.002*   0.001 
   (0.001)   (0.001) 
Industry, Municipality and Year Fixed Effects yes yes yes yes yes yes 
Firm Fixed Effects no yes yes no yes yes 
Firm Size Dummies and no no yes no no yes 
Multi-establishment Dummy 
Workforce Characteristics no no yes no no yes 
Mean Y 11.409 11.409 11.409 11.409 11.409 11.409 
First Stage: KP F-statistic on Instrument — — — 9.227 8.765 7.829 
First Stage: Non-EU Img IV Coeff. — — — 0.191*** (0.057) 0.189** (0.086) 0.186** (0.083) 
R2 0.047 0.569 0.570 0.046 0.568 0.569 
N 59,399 59,399 59,399 59,399 59,399 59,399 

The dependent variable is the natural log of firm-level offshoring volumes (narrow definition) conditional on offshoring. The non-EU immigrant sharet-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. Robust standard errors clustered at the municipality level in parentheses. Significance levels: ***1%, **5%, and *10%.

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