Do high-skill immigrants raise productivity? Evidence from Israeli manufacturing firms, 1990-1999

Table 10 Immigrants and total factor productivity: the output share approach dependent variable: total factor productivity

	Levels, all available firms, 1993 and 1997	First differences, all available firms, 1990-1993 and 1993-1997	First differences, balanced sample, 1990-1993 and 1993-1997
Share immigrants	-0.032 (0.036)	-0.093** (0.043)	-0.060 (0.064)
Log capital per worker	0.140** (0.015)	0.0249 (0.041)	-0.028 (0.047)
Log materials per worker	-0.099** (0.014)	0.014 (0.030)	-0.051 (0.045)
Log employment	0.162** (0.006)	0.152** (0.041)	0.345 (0.043)
Log R&D expenditures	0.062** (0.019)	-0.018 (0.021)	-0.023 (0.025)
1 if no R&D expenditures	0.279** (0.124)	-0.124 (0.113)	0.118 (0.146)
Region dummies	Yes	Yes	Yes
3-digit industry dummies	Yes	Yes	Yes
N	3508	2361	1222
R²	0.742	0.532	0.631

Note: The dependent variable is firm-level TFP calculated as TFP _ijt = ln(Y _ijt) - α _jt ln L _ijt - β _jt ln K _ijt - γ _jt ln M _ijt, where i denotes firm, j denotes industry, and t denotes time. These measures are calculated using all the available data from the Industrial Surveys from 1990 to 1999.
*: Statistically significant at the 10% level.
**: Statistically significant at the 5% level.