Hiring the First Non-native Worker and Exports

Abstract

This study examines whether non-native workers contribute to firms’ export growth, using matched data spanning nearly three decades and covering the entire workforce and all manufacturing firms. The estimation strategy relies on the timing of a firm’s first non-native hire, constructing counterfactuals from otherwise similar firms that hire non-native workers a few years later. The results indicate that nonnative employment is associated with increased total exports, greater trade with workers’ home countries, and a higher number of exported products. These findings remain robust when addressing potential endogeneity concerns, such as the simultaneity of hiring decisions and broader export growth strategies.

Publication info

Results of research
Innovation-led Pathways to Economic Growth
Research group
Growth, international trade and competition
Series
ETLA Working Papers 126
Date
24.02.2025
Keywords
Firm-level, Hiring, Immigrant, Trade
ISSN
2323-2420, 2323-2439 (Pdf)
JEL
F14, F22, J61
Pages
30
Language
English