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

Table 8 Production functions, cross-sectional and pooled estimates full sample dependent variable: log output per worker

	1993	1993	1997	1997	Pooled, 1993-1997	Pooled, 1993-1997
Share immigrants	-0.044 (0.054)	0.022 (0.055)	-0.034 (0.038)	0.008 (0.033)	-0.034 (0.033)	0.022 (0.029)
Log capital per worker	0.165** (0.012)	0.242** (0.018)	0.201** (0.019)	0.278** (0.024)	0.182** (0.012)	0.245** (0.015)
Log materials per worker	0.517** (0.015)	0.465** (0.018)	0.472** (0.020)	0.424** (0.020)	0.497** (0.014)	0.453** (0.014)
Log employment	0.042** (0.008)	0.041** (0.007)	0.048** (0.009)	0.042** (0.008)	0.044** (0.006)	0.040** (0.006)
Log R&D expenditures	0.048** (0.009)	0.018** (0.009)	0.026 (0.026)	0.019 (0.025)	0.039** (0.011)	0.011 (0.010)
1 if no R&D	-0.183** (0.028)	-0.096** (0.028)	-0.176** (0.052)	-0.059 (0.063)	-0.178** (0.027)	-0.066** (0.031)
Region dummies	Yes	Yes	Yes	Yes	Yes	Yes
3-digit industry dummies	No	Yes	No	Yes	No	Yes
N	2087	2087	1421	1421	3508	3508
R²	0.863	0.895	0.850	0.890	0.855	0.887
Implied production function parameters
α	0.165** (0.012)	0.242** (0.018)	0.201** (0.019)	0.278** (0.024)	0.182** (0.012)	0.245** (0.015)
β	0.517** (0.015)	0.465** (0.018)	0.472** (0.020)	0.424** (0.020)	0.497** (0.014)	0.453** (0.014)
γ	0.359** (0.017)	0.334** (0.016)	0.374** (0.020)	0.340** (0.021)	0.365** (0.013)	0.341** (0.013)
μ	-0.123 (0.150)	0.067 (0.164)	-0.092 (0.102)	0.023 (0.097)	-0.092 (0.089)	0.066 (0.086)

Note: Entries in the table represent weighted least squares coefficients, where the weights are the CBS sampling weights. Robust standard errors in parentheses.
*: Statistically different from 0 at the 10% level.
**: Statistically different from 0 at the 5% level.