Skip to main content

Table 9 Production functions – first differences estimates dependent variable: change in log output per worker

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

  Sample: all available firms Sample: balanced sample
  1990-1993 1993-1997 Pooled 1990-1993 1993-1997 Pooled
Share Immigrants -0.048 (0.059) -0.094** (0.042) -0.073** (0.030) 0.065 (0.067) -0.056 (0.042) -0.029 (0.036)
Log capital per worker 0.188** (0.044) 0.068 (0.044) 0.121** (0.028) 0.168** (0.048) 0.049 (0.041) 0.071** (0.034)
Log materials per worker 0.584** (0.031) 0.490** (0.056) 0.567** (0.030) 0.651** (0.044) 0.449** (0.055) 0.493** (0.050)
Log employment 0.085* (0.044) -0.029 (0.045) 0.032 (0.028) 0.029 (0.039) -0.089** (0.038) -0.052 (0.035)
Log R&D expenditures 0.006 (0.013) 0.001 (0.023) -0.009 (0.011) 0.007 (0.015) 0.006 (0.022) -0.009 (0.012)
1 if no R&D expenditures -0.028 (0.059) -0.030 (0.152) -0.088 (0.060) 0.012 (0.079) -0.005 (0.153) -0.063 (0.073)
Region dummies Yes Yes Yes Yes Yes Yes
3-digit industry dummies Yes Yes Yes Yes Yes Yes
N 1700 661 2361 611 611 1222
R2 0.766 0.864 0.780 0.812 0.832 0.773
Implied production function parameters
α 0.188** (0.044) 0.068 (0.044) 0.121** (0.028) 0.168** (0.048) 0.049 (0.041) 0.071** (0.034)
β 0.584** (0.031) 0.490** (0.056) 0.567** (0.030) 0.651** (0.044) 0.449** (0.055) 0.493** (0.050)
γ 0.312** (0.027) 0.413** (0.039) 0.344** (0.024) 0.210** (0.045) 0.413** (0.034) 0.385** (0.035)
μ -0.154 (0.189) -0.227** (0.095) -0.211** (0.086) 0.310 (0.349) -0.136 (0.100) -0.076 (0.092)
  1. Note: All the explanatory variables are expressed in first differences. Entries in the table represent weighted least squares coefficients, where the weights are the CBS sampling weights. Robust standard errors in parentheses.
  2. *: Statistically significant at the 10% level.
  3. **: Statistically significant at the 5% level.