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Foreign Human Capital and Total Factor Productivity : A Sectoral Approach

Fassio, Claudio LU ; Kalantaryan, Sona and Venturini, Alessandra (2019) In Review of Income and Wealth
Abstract

We analyze the role of migrants in productivity growth in the three largest European countries—France, Germany and the United Kingdom—in the years 1994–2007, using Total Factor Productivity. Unlike previous research, which mainly employs a regional approach, our analysis is at the sectoral level: this allows to distinguish the real contribution of migrants to productivity from possible inter-sectoral complementarities, which might also foster growth. We control for the share of migrants and the different components of human-capital, such as education, age and diversity, and adopt instrumental variables strategies to address the possible endogeneity of migration. The results show that migrants contribute to the productivity of the... (More)

We analyze the role of migrants in productivity growth in the three largest European countries—France, Germany and the United Kingdom—in the years 1994–2007, using Total Factor Productivity. Unlike previous research, which mainly employs a regional approach, our analysis is at the sectoral level: this allows to distinguish the real contribution of migrants to productivity from possible inter-sectoral complementarities, which might also foster growth. We control for the share of migrants and the different components of human-capital, such as education, age and diversity, and adopt instrumental variables strategies to address the possible endogeneity of migration. The results show that migrants contribute to the productivity of the sectors in which they are employed, but with important differences: highly-educated migrants show a larger positive effect in high-tech sectors, and to a lesser extent in services sector. The diversity of countries of origin contributes to productivity growth only in the services sectors.

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Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
epub
subject
keywords
diversity, highly skilled migrants, migration, sectoral productivity
in
Review of Income and Wealth
publisher
Wiley-Blackwell
external identifiers
  • scopus:85068933375
ISSN
0034-6586
DOI
10.1111/roiw.12426
language
English
LU publication?
yes
id
b2c21f9b-097b-4e97-aeb0-97ec402d10e1
date added to LUP
2019-07-25 08:14:03
date last changed
2019-08-28 04:57:21
@article{b2c21f9b-097b-4e97-aeb0-97ec402d10e1,
  abstract     = {<p>We analyze the role of migrants in productivity growth in the three largest European countries—France, Germany and the United Kingdom—in the years 1994–2007, using Total Factor Productivity. Unlike previous research, which mainly employs a regional approach, our analysis is at the sectoral level: this allows to distinguish the real contribution of migrants to productivity from possible inter-sectoral complementarities, which might also foster growth. We control for the share of migrants and the different components of human-capital, such as education, age and diversity, and adopt instrumental variables strategies to address the possible endogeneity of migration. The results show that migrants contribute to the productivity of the sectors in which they are employed, but with important differences: highly-educated migrants show a larger positive effect in high-tech sectors, and to a lesser extent in services sector. The diversity of countries of origin contributes to productivity growth only in the services sectors.</p>},
  author       = {Fassio, Claudio and Kalantaryan, Sona and Venturini, Alessandra},
  issn         = {0034-6586},
  keyword      = {diversity,highly skilled migrants,migration,sectoral productivity},
  language     = {eng},
  month        = {07},
  publisher    = {Wiley-Blackwell},
  series       = {Review of Income and Wealth},
  title        = {Foreign Human Capital and Total Factor Productivity : A Sectoral Approach},
  url          = {http://dx.doi.org/10.1111/roiw.12426},
  year         = {2019},
}