MIT Press

Table 3.

Immigration and the Intensive Margin of Firm Offshoring

	Offshoring (Intensive Margin)
	OLS	OLS	OLS	IV	IV	IV
	(1)	(2)	(3)	(4)	(5)	(6)
Non-EU Immigrant Share $_{t - 1}$	−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 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
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)
$R^{2}$	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)
	OLS	OLS	OLS	IV	IV	IV
	(1)	(2)	(3)	(4)	(5)	(6)
Non-EU Immigrant Share $_{t - 1}$	−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 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
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)
$R^{2}$	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 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. Robust standard errors clustered at the municipality level in parentheses. Significance levels: ^***1%, ^**5%, and ^*10%.

View Large

This Feature Is Available To Subscribers Only