July 2001

IZA DP No. 331: Why Do Firms Recruit Internationally? Results from the IZA International Employer Survey 2000

published in: Schmollers Jahrbuch: Zeitschrift für Wirtschafts- und Sozialwissenschaften / Journal of Applied Social Science Studies, 2002, 122 (2), 155-178

The paper studies the demand for foreign graduates at the firm level. Using a unique dataset on recruitment policies of firms in four European countries, the determinants of demand for internationally mobile high-skilled employees are established. I investigate the number, origin, skills, and functions of foreign graduates, as well as the experiences of firms recruiting internationally. A number of hypotheses for the international demand are formulated and assessed. Foreign highly-skilled employees are recruited mainly because of their special skills, be it international competence or technical know-how, that are not available domestically.