%0 Report %A Malchow-Møller, Nikolaj %A Munch, Jakob R. %A Skaksen, Jan Rose %T Do Foreign Experts Increase the Productivity of Domestic Firms? %D 2011 %8 2011 Oct %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 6001 %U https://www.iza.org/index.php/publications/dp6001 %X 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. %K productivity %K immigrants %K export %K foreign experts %K difference-in-differences matching