The Review of Economics and Statistics Vol. 103 No. 1 2021
The Impact of Immigration on Firm-Level Offshoring
Abstract
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 negative, a subsequent bilateral analysis shows that immigrants have connections in their country of origin that increase the likelihood that firms offshore to that particular foreign country.
- DOI
- 10.1162/rest_a_00861
- Volume
- 103
- Issue
- 1
- Pages
- 177-195
- Language
- en
- Sources
- openalex crossref