The Impact of Immigration on Firm-Level Offshoring

  title={The Impact of Immigration on Firm-Level Offshoring},
  author={William W. Olney and Dario Pozzoli},
  journal={Review of Economics and Statistics},
This paper studies the relationship between immigration and offshoring by examining whether an influx of foreign workers reduces the need for firms to relocate jobs abroad. Using a Danish natural experiment and their employer-employee matched data set covering the universe of workers and firms (1995–2011), our findings show that an exogenous influx of immigrants into a municipality reduces firm-level offshoring at both the extensive and intensive margins. While the multilateral relationship is… Expand
Offshoring Response to High-Skill Immigration: A Firm-Level Analysis
Immigration, by increasing the supply of foreign labor to firms, may change the incentives of firms to offshore. This paper studies the relationship between immigration and offshoring by examining aExpand
International Trade and Labor Market Integration of Immigrants
We examine if international trade improves labor market integration of immigrants in Sweden. Immigrants participate substantially less than natives in the labor market. However, trading with aExpand
Do migrants affect the local product mix? An analysis of the effects and underlying mechanisms
We study the impact of immigration on the product mix of the receiving economy by combining information on the local presence of immigrants with a highly detailed definition of the set of goodsExpand
How Do Restrictions on High-Skilled Immigration Affect Offshoring? Evidence from the H-1b Program
Skilled immigration restrictions may have secondary consequences that have been largely overlooked in the immigration debate: multinational firms faced with visa constraints have an offshoringExpand
Migration and the Structure of Manufacturing Production. A View from Italian Provinces
What is the impact of immigration on the product mix of the receiving economy? To answer this question we exploit variation in the presence of immigrants across Italian provinces within the periodExpand
High-Skill Immigration, Offshoring R&D, and Firm Dynamics*
Foreign inputs in the form of immigrant researchers and imported R&D services play an increasingly important role in firm’s R&D activities. This paper studies firms’ decision to use such inputs andExpand
A literature review of the nexus between migration and internationalization
Although the evidence suggests that migration facilitates trade and internationalization, there are substantial gaps and inconsistencies in the existing literature and the aim of this paper is to encourage further research and assist policymakers in their efforts to promote economic recovery including internationalization. Expand
Foreign Workers, Product Quality, and Trade: Evidence from a Natural Experiment
This paper shows that international labor mobility attenuates information frictions, and leads to higher-quality products, more trade, and more effective global value chains. Exploiting the variationExpand


Offshoring, Immigration, and the Native Wage Distribution
This paper presents a simple model that examines the impact of offshoring and immigration on wages and tests these predictions using U.S. state-industry-year panel data. According to the model, theExpand
Immigration and Firm Expansion
Research generally focuses on how immigration affects native workers, while the impact of immigration on domestic firms is often overlooked. This paper addresses this important omission by examiningExpand
The Labor Market Impact of Immigration: A Quasi-Experiment Exploiting Immigrant Location Rules in Germany
  • A. Glitz
  • Economics
  • Journal of Labor Economics
  • 2012
With the fall of the Berlin Wall, ethnic Germans living in eastern Europe and the former Soviet Union were given the opportunity to migrate to Germany. Within 15 years, 2.8 million individuals hadExpand
Immigration, Trade and Productivity in Services: Evidence from U.K. Firms
This paper explores the impact of immigrants on the imports, exports and productivity of service-producing firms in the U.K. Immigrants may substitute for imported intermediate inputs (offshoreExpand
Immigration, offshoring and American jobs
How many "American jobs" have U.S.-born workers lost due to immigration and offshoring? Or, alternatively, is it possible that immigration and offshoring, by promoting cost-savings and enhancedExpand
Immigration and Trade Creation: Econometric Evidence from Canada
Immigrants may expand trade with their country of origin, owing to superior knowledge of, or preferential access to, market opportunities. The authors test this proposition using Canadian trade dataExpand
Rethinking the Effect of Immigration on Wages
This paper asks the following question: what was the effect of surging immigration on average and individual wages of U.S.-born workers during the period 1990-2004? We emphasize the need for aExpand
Estimating the Impact of Trade and Offshoring on American Workers using the Current Population Surveys
Abstract We link industry-level data on trade and offshoring with individual-level worker data from the Current Population Surveys from 1984 to 2002. We find that occupational exposure toExpand
Immigrants' Effect on Native Workers: New Analysis on Longitudinal Data
Using longitudinal data on the universe of workers in Denmark during the period 1991-2008 we track the labor market outcomes of low skilled natives in response to an exogenous inflow of low skilledExpand
The Trade Creation Effect of Immigrants: Evidence from the Remarkable Case of Spain
There is abundant evidence that immigrant networks are associated with larger exports from the country where they settle to their countries of origin. The direction of causality of this associationExpand