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Table 5.
Immigration and Firm Offshoring at the Bilateral Level
Extensive MarginIntensive Margin
(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)
Bilateral Non-EU Immigrant Sharet-1 2.357***    2.103*** 18.365    16.428 
 (0.890)    (0.179) (10.716)    (9.395) 
Bilateral Non-EU Immigrant Sharet-1 (High-Skill)  19.649***     23.689    
  (3.121)     (87.707)    
Bilateral Non-EU Immigrant Sharet-1 (Low-Skill)  0.783**     10.127    
  (0.333)     (13.526)    
Bilateral Non-EU Immigrant Sharet-1 (White-Collar)   14.234***     2.145   
   (1.876)     (7.707)   
Bilateral Non-EU Immigrant Sharet-1 (Blue-Collar)   0.303**     0.543   
   (0.146)     (2.443)   
Bilateral Firm Non-EU Immigrant Sharet-1    0.303***     7.277  
    (0.039)     (10.711)  
Other non-EU Immigrant Sharet-1     −0.100**     −12.006* 
     (0.046)     (6.634) 
Industry, Municipality and Year Fixed Effects yes yes yes yes yes yes yes yes yes yes 
Firm Fixed Effects yes yes yes yes yes yes yes yes yes yes 
Firm Controls yes yes yes yes yes yes yes yes yes yes 
Workforce Characteristics yes yes yes yes yes yes yes yes yes yes 
Destination Fixed Effects yes yes yes yes yes yes yes yes yes yes 
Mean Y 0.029 0.029 0.029 0.029 0.029 10.487 10.487 10.487 10.487 10.487 
First Stage: KP F-statistic on Instruments 20.378 21.179; 15.310 21.633; 13.776 16.192 20.654; 8.512 32.838 24.441; 13.971 23.675; 12.876 13.120 35.623; 11.471 
First Stage: Bil Non-EU Img IV Coeff. 0.257** (0.108)   1.200***(0.086) 0.782*** (0.069) 0.504*** (0.077)   1.130*** (0.147) 0.497*** (0.076) 
First Stage: Bil Non-EU Img IV Coeff (High-Skill)  1.107*** (0.043)     1.256*** (0.056)    
First Stage: Bil Non-EU Img IV Coeff (Low-Skill)  0.806*** (0.096)     1.271*** (0.076)    
First Stage: Bil Non-EU Img IV Coeff (White Collar)   1.985*** (0.057)     1.991*** (0.088)   
First Stage: Bil Non-EU Img IV Coeff (Blue Collar)   0.556*** (0.099)     0.877*** (0.152)   
First Stage: Non-EU Img IV Coeff.     0.187*** (0.054)     0.179** (0.072) 
R2 0.124 0.125 0.125 0.124 0.131 0.264 0.264 0.264 0.264 0.264 
N 20,306,958 20,306,958 20,306,958 20,306,958 20,306,958 103,025 103,025 103,025 103,025 103,025 
Extensive MarginIntensive Margin
(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)
Bilateral Non-EU Immigrant Sharet-1 2.357***    2.103*** 18.365    16.428 
 (0.890)    (0.179) (10.716)    (9.395) 
Bilateral Non-EU Immigrant Sharet-1 (High-Skill)  19.649***     23.689    
  (3.121)     (87.707)    
Bilateral Non-EU Immigrant Sharet-1 (Low-Skill)  0.783**     10.127    
  (0.333)     (13.526)    
Bilateral Non-EU Immigrant Sharet-1 (White-Collar)   14.234***     2.145   
   (1.876)     (7.707)   
Bilateral Non-EU Immigrant Sharet-1 (Blue-Collar)   0.303**     0.543   
   (0.146)     (2.443)   
Bilateral Firm Non-EU Immigrant Sharet-1    0.303***     7.277  
    (0.039)     (10.711)  
Other non-EU Immigrant Sharet-1     −0.100**     −12.006* 
     (0.046)     (6.634) 
Industry, Municipality and Year Fixed Effects yes yes yes yes yes yes yes yes yes yes 
Firm Fixed Effects yes yes yes yes yes yes yes yes yes yes 
Firm Controls yes yes yes yes yes yes yes yes yes yes 
Workforce Characteristics yes yes yes yes yes yes yes yes yes yes 
Destination Fixed Effects yes yes yes yes yes yes yes yes yes yes 
Mean Y 0.029 0.029 0.029 0.029 0.029 10.487 10.487 10.487 10.487 10.487 
First Stage: KP F-statistic on Instruments 20.378 21.179; 15.310 21.633; 13.776 16.192 20.654; 8.512 32.838 24.441; 13.971 23.675; 12.876 13.120 35.623; 11.471 
First Stage: Bil Non-EU Img IV Coeff. 0.257** (0.108)   1.200***(0.086) 0.782*** (0.069) 0.504*** (0.077)   1.130*** (0.147) 0.497*** (0.076) 
First Stage: Bil Non-EU Img IV Coeff (High-Skill)  1.107*** (0.043)     1.256*** (0.056)    
First Stage: Bil Non-EU Img IV Coeff (Low-Skill)  0.806*** (0.096)     1.271*** (0.076)    
First Stage: Bil Non-EU Img IV Coeff (White Collar)   1.985*** (0.057)     1.991*** (0.088)   
First Stage: Bil Non-EU Img IV Coeff (Blue Collar)   0.556*** (0.099)     0.877*** (0.152)   
First Stage: Non-EU Img IV Coeff.     0.187*** (0.054)     0.179** (0.072) 
R2 0.124 0.125 0.125 0.124 0.131 0.264 0.264 0.264 0.264 0.264 
N 20,306,958 20,306,958 20,306,958 20,306,958 20,306,958 103,025 103,025 103,025 103,025 103,025 

The dependent variable is bilateral offshoring to foreign country (X) measured at the extensive margin in columns 1 to 5 and at the intensive margin in columns 6 to 10. The Bilateral Non-EU Immigrant Share variable is foreign country (X) specific. The bilateral Non-EU Immigrant Share (High-Skill) includes foreign workers with at least a tertiary education. The bilateral Non-EU Immigrant Share (Low-Skill) includes foreign workers with less than a tertiary education. The Firm Non-EU Immigrant Share is the share of non-EU immigrants from country X within the firm. Finally, the Other Non-EU Immigrant Share variable includes immigrants from all other countries, not including country X. Robust standard errors clustered at the municipality level in parentheses. Significance levels: ***1%, **5%, and *10%.

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