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{{ links }}It aimed at bringing together researchers from … Existing firm‐level studies show that immigrants possess valuable knowledge on foreign markets that decreases variable and fixed costs faced by exporters. The results are confirmed for both stages, which indicates that immigrant employment matters for the intensive margin of trade. (2017) provide evidence on the cost‐decreasing effect of high‐skilled immigrants at the firm level in Germany. Including two instruments allows to test for over‐identification. Bitte Javascript aktivieren. In particular, Mitaritonna et al. OLS results are presented in column (1) and IV‐2SLS results in column (2) of Table A19. Restrictions apply to the availability of these data, which were used under license for this study. Most studies suggest that immigrants exert a greatest pro‐trade effect on differentiated goods for which the price fails to transmit relevant information. We thus define an immigrant worker as a foreign citizen. We provide evidence that the pro‐trade effect of immigrant workers occurs at both trade margins and for immigrants in both low‐ and high‐skilled occupations. (2016) investigate the causal effect of an increase in ethnic diversity on export outcomes at both margins. Our empirical strategy presents two important features. In line with the literature, the authors instrument the immigrant employment by the local stock of immigrant workers excluding those employed by the firm. We allow immigrant workers to impact firm‐level exports through two different channels documented in the literature so far: (a) immigrant workers in high‐skilled occupations convey valuable information on foreign markets which lowers trade costs and (b) all immigrant workers have a positive impact on total factor productivity through their complementarity with natives. Hence, both immigrants' and firms' decisions are likely to generate a potential upward bias in the estimation of the export‐enhancing effect of immigrant workers. Léa Marchal (Bielefeld University) will present «Import Competition, Firms’ Performance and Immigrant Workers». The ATE estimates reported in column (1) indicate that firms employing immigrants in both high‐ and low‐skilled occupations exhibit a significantly lower export concentration.
Theoretically, the effect of immigration on exports has been demonstrated in a study by Peri and Requena‐Silvente (2010) using the model of Chaney (2008). Available theoretical models have so far focused exclusively on the cost‐decreasing effect of immigrants and these models leave no room to rationalize the empirical finding of a pro‐trade effect of immigrants in low‐skilled occupations. For instance, the year 1990 could be too close to the first year of our sample (1997) to guaranty the exogeneitee of the instrument to firms' decisions and outcomes. Nonetheless, we find a positive and significant impact when we look at occupation groups separately in column (2) of Table 10. Results are presented in Tables A4 and A5. We find that a 1% increase in the employment of immigrants induces a 0.09% increase in the probability to be an exporter. This effect can be decomposed in a general effect – to which any foreign worker contributes – and a destination-specific effect – to which only foreign workers who were born in the export destination contribute. The full text of this article hosted at iucr.org is unavailable due to technical difficulties. This effect is positive and significant for all measures of the intensive margin. In this section, we estimate the effect of immigrant workers on several export outcomes at the firm level. This probability, in turn, increases exports at all trade margins. We find that the probability of employing immigrants positively depends upon the imputed stock of immigrant workers in the region of the firm. Hence, we cannot exclude that a firm could hire many immigrant workers from various origin countries while it could also hire many immigrant workers from the same origin country. Firms employing immigrants in high‐skilled occupations export on average 2.25 times more than control firms (column 1). We then present a number of complementary results aimed at testing the effect across export destinations. This dataset is thus appropriate for a consistent identification of the pro‐trade effect of immigrants on exports at the firm level. Nonetheless, the correlation between and amounts to 28% and therefore forbids us to implement a standard IV‐2SLS model. Second, we investigate the fact that the magnitude of the ATE of employing immigrants in low‐skilled occupations is larger than the ATE of employing immigrants in high‐skilled occupations (Table 10).
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