Template-type: ReDIF-Paper 1.0
Author-Name: Fassio, Claudio
Author-Email: claudio.fassio@circle.lu.se 
Author-Name: Montobbio, Fabio
Author-Email: fabio.montobbio@unito.it
Author-Name: Venturini, Alessandra 
Author-Email: alessandra.venturini@unito.it 
Author-Workplace-Name: University of Turin
Author-Workplace-Homepage: http://www.est.unito.it/
Title: How Do Native and Migrant Workers Contribute to Innovation?
Abstract: This paper uses the French and the UK Labour Force Surveys and German Microcensus to
estimate the effects of the different components of the labour force on innovation at the sectoral
level between 1994 and 2005, focusing in particular on the contribution of migrant workers. We
adopt a production function approach in which we control for the usual determinants of innovation,
such as R&D investments, stock of patents and openness to trade. To address for the possible
endogeneity of migrants we implement instrumental variable strategies using both two-stage least
squares with external instruments and GMM-SYS with internal ones. In addition we also account for
the possible endogeneity of native workers and instrument them accordingly. Our results show that
highly educated migrants have a positive effect on innovation even if the effect is smaller relative to
the one of the educated natives. Moreover this positive effect seems to be confined to the high tech
sectors and among highly educated migrants from other European countries.
Length: 42 pages
Creation-Date: 2015-05
File-URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2015dip/wp_20_2015.pdf
File-Format: Application/PDF
Handle: RePEc:uto:labeco:201507