@TechReport{iza:izadps:dp6001, author={Malchow-Møller, Nikolaj and Munch, Jakob R. and Skaksen, Jan Rose}, title={Do Foreign Experts Increase the Productivity of Domestic Firms?}, year={2011}, month={Oct}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={6001}, url={https://www.iza.org/index.php/publications/dp6001}, abstract={While most countries welcome (and some even subsidise) high-skilled immigrants, there is very limited evidence of their importance for domestic firms. To guide our empirical analysis, we first set up a simple theoretical model to show how foreign experts may impact on the productivity and wages of domestic firms. Using matched worker-firm data from Denmark and a difference-indifferences matching approach, we then find that firms that hire foreign experts – defined as employees eligible for reduced taxation under the Danish "Tax scheme for foreign researchers and key employees" – both become more productive (pay higher wages) and increase their exports of goods and services.}, keywords={productivity;immigrants;export;foreign experts;difference-in-differences matching}, }