International Knowledge Spillovers: The Benefits from Employing Immigrants

This paper explores the role of immigrant employees for a firm’s capability to absorb international knowledge. Using matched employer-employee data from Denmark for the years 1996 to 2009, we are able to show that non-Danish employees from technological advanced countries contribute significantly to a firm’s economic output through their ability to access international knowledge. The empirical results suggest that the immigrants’ impact increases if they come from technological advanced countries, have a high educational level, and are employed in high-skilled positions.