עברית

Do High-Skill Immigrants Raise Productivity? Evidence from Israeli Manufacturing Firms, 1990-1999 STE-WP-36

Dr. Daniele Paserman
Cite As:
Paserman Daniele. Do High-Skill Immigrants Raise Productivity? Evidence from Israeli Manufacturing Firms, 1990-1999 STE-WP-36 Haifa Israel: Samuel Neaman Institute, 2007. https://neaman.org.il/EN/Do-High-Skill-Immigrants-Raise-Productivity-Manufacturing-1990-1999-STE-WP-36
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ste36.pdf(602KB)

During the second part of the 1990s, the Israeli economy experienced a surge in labor productivity and total factor productivity, which was driven primarily by the manufacturing sector. This surge in productivity coincided with the full absorption and integration into the workforce of highly skilled immigrants from the former Soviet Union. The Soviet immigrants were disproportionately employed in manufacturing and, after an initial adjustment period, progressively moved into higher responsibility occupations where their skills could be put to use more efficiently. This has led some observers to comment that the high-skilled immigration wave was one of the main determinants for the fast growth of the Israeli economy in the 1990s.
This paper uses a unique data set on Israeli manufacturing firms and investigates directly whether firms and industries with a higher concentration of immigrants experienced increases in labor productivity and total factor productivity. The analysis shows that there is no correlation between immigrant concentration and productivity at the firm level in cross-sectional and pooled OLS regressions. First-differences estimates, which control for fixed unobserved differences between firms, reveal, if anything, a negative correlation between the change in output per worker and the change in the immigrant share. A more in-depth analysis reveals that the immigrant share was strongly negatively correlated with output and productivity in low-tech industries. In high-technology industries, the results tend to point to a positive relationship, hinting at complementarities between technology and the skilled immigrant workforce.

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Data and Indicators on Aerospace Engineering, ICT and Biotechnology in Israel

Data and Indicators on Aerospace Engineering, ICT and Biotechnology in Israel

 Daphne Getz , Vered Gilad , Marian Shumaf - Tehawkho
A Strategy for Developing Employment Opportunities for the Arabs in Israel: The Vision for Expanding the Arab Middle Class

A Strategy for Developing Employment Opportunities for the Arabs in Israel: The Vision for Expanding the Arab Middle Class

 Yusof Jabareen
Vouchers for New Immigrants as Tools for the Job Market

Vouchers for New Immigrants as Tools for the Job Market

 Miriam Erez , Anat Rotstein
Estimated supply and demand of manpower in the infrastructure engineering

Estimated supply and demand of manpower in the infrastructure engineering

 Yehiel Rozenfeld , Adam Buchman
Total Factor Productivity as a Performance Benchmark for Firms: Theory and Evidence, SNI R&D Policy Papers Series

Total Factor Productivity as a Performance Benchmark for Firms: Theory and Evidence, SNI R&D Policy Papers Series

 Hariolf Grupp , Shlomo Maital
The Contribution of Technion Graduates to the Israeli Economy

The Contribution of Technion Graduates to the Israeli Economy

 David Cohen , Ilana Shalev
The Scarcity of Electronics Engineers and Computer Sciences Graduates in Companies Belonging to the Electronics Industry Association.

The Scarcity of Electronics Engineers and Computer Sciences Graduates in Companies Belonging to the Electronics Industry Association.

 David Cohen , Ilana Shalev
A Survey of Technion Graduates - Class of 1989

A Survey of Technion Graduates - Class of 1989

 David Cohen , Ilana Shalev
Career and Employment Patterns among Graduates of Doctoral Programs in Engineering and Science in Israeli Universities

Career and Employment Patterns among Graduates of Doctoral Programs in Engineering and Science in Israeli Universities

 Miriam Erez , Hadas Haramati
Trends in Hiring Demands for Professionals by Companies Belonging to the Association of Software Developers in Israel

Trends in Hiring Demands for Professionals by Companies Belonging to the Association of Software Developers in Israel

 David Cohen
Human Resources Policy in an Age of Change, 1994, (Internal Report)

Human Resources Policy in an Age of Change, 1994, (Internal Report)

 Daniel Shimsoni
Trends in Demand for Electronics Engineers and Graduates of Computer Sciences

Trends in Demand for Electronics Engineers and Graduates of Computer Sciences

 David Cohen , Erez Arel
An Examination of the Wage System of Technion Professors - Current Problems and Solutions

An Examination of the Wage System of Technion Professors - Current Problems and Solutions

 Abraham Friedman
Agroplastics - A Market Analysis

Agroplastics - A Market Analysis

 Menaem Gotliv
Information and Communication Technology (ICT) Investments in Israel STE-WP-37

Information and Communication Technology (ICT) Investments in Israel STE-WP-37

 Gil Shiff
Do High-Skill Immigrants Raise Productivity? Evidence from Israeli Manufacturing Firms, 1990-1999 STE-WP-36

Do High-Skill Immigrants Raise Productivity? Evidence from Israeli Manufacturing Firms, 1990-1999 STE-WP-36

 Daniele Paserman
Harnessing Success: Determinants of University Technology Licensing Performance STE-WP-35

Harnessing Success: Determinants of University Technology Licensing Performance STE-WP-35

 Sharon Belenzon , Mark Shnkerman
KNOWLEDGE-INTENSIVE PROPERTY RIGHTS (STE-WP-39)

KNOWLEDGE-INTENSIVE PROPERTY RIGHTS (STE-WP-39)

 Cristiano Antonelli , Morris Teubal
The Limits of Capital: Transcending the Public Financer - Private Producer Split in R&D (STE-WP-40)

The Limits of Capital: Transcending the Public Financer - Private Producer Split in R&D (STE-WP-40)

 Dan Breznitz , Amos Zehavi
Environmental technologies - the green future

Environmental technologies - the green future

 Ofira Ayalon , Avi Temkin
Terror and the Costs of Crime

Terror and the Costs of Crime

 Eric D. Gould , Guy Stecklov
Are Voters Sensitive to Terrorism? Direct Evidence from the Israeli Electorate

Are Voters Sensitive to Terrorism? Direct Evidence from the Israeli Electorate

 Claude Berrebi , Klor F. Esteban
The Economic Consequences of the Use and Control of Land Resources by the Defense Sector in Israel

The Economic Consequences of the Use and Control of Land Resources by the Defense Sector in Israel

 Zalman F. Shiffer , Oren Amiram
Allocating Security Expenditures under Knightian Uncertainty: an Info-Gap Approach

Allocating Security Expenditures under Knightian Uncertainty: an Info-Gap Approach

 Michael Ben-Gad , Yakov Ben-Haim , Dan Peled
Investment Policies in Defense R&D Programs

Investment Policies in Defense R&D Programs

 Oren Setter , Asher Tishler
Space Technology, Patterns of Warfare and Force Build-up: Between a Power and a Small State

Space Technology, Patterns of Warfare and Force Build-up: Between a Power and a Small State

 Deganit Paikowsky
Privatization in Higher Education

Privatization in Higher Education

 Gury Zilkha
A National Plan for the Chemical Industry in Israel

A National Plan for the Chemical Industry in Israel

 Gilead Fortuna
The Ramifications of Technology Transfer Based on Intellectual Property Licensing

The Ramifications of Technology Transfer Based on Intellectual Property Licensing

 Niva Elkin-Koren
Liquidity Constraints on the Attainment of Tertiary Education in Israel

Liquidity Constraints on the Attainment of Tertiary Education in Israel

 Yoav Freedman
The quality of Israeli academic institutions: what the wages of graduates tell about it?

The quality of Israeli academic institutions: what the wages of graduates tell about it?

 Noam Suzzman , Orly Furman , Tom Caplan , Dmitri Romanov
Equity and Efficiency Effects of Different Funding Arrangements for Higher Education: A Calibrated Analysis Applied to Israel

Equity and Efficiency Effects of Different Funding Arrangements for Higher Education: A Calibrated Analysis Applied to Israel

 Yaakov Gilboa , Moshe Justman
Comparison of the Faculty of Industrial Engineering at the Technion and similar faculties in U.S. universities using bibliometrics indices

Comparison of the Faculty of Industrial Engineering at the Technion and similar faculties in U.S. universities using bibliometrics indices

 Daphne Getz , Marian Shumaf - Tehawkho
Data and Indicators on Aerospace Engineering, ICT and Biotechnology in Israel

Data and Indicators on Aerospace Engineering, ICT and Biotechnology in Israel

 Daphne Getz , Vered Gilad , Marian Shumaf - Tehawkho
Human Resources for Science and Technology in Israel

Human Resources for Science and Technology in Israel

 Daphne Getz , Tsipy Buchnik , Bella Zalmanovich , Marian Shumaf - Tehawkho , Sivan Frenkel
The Possible Role Of Israeli Solar Technologies In The Meadowlands

The Possible Role Of Israeli Solar Technologies In The Meadowlands' Renewable Energy Efforts

 Ofira Ayalon , Efrat Elimelech
Reclaiming the Dead Sea, Alternatives for Action

Reclaiming the Dead Sea, Alternatives for Action

 Yoram Avnimelech , Yifaat Baron , Gadi Rosental , Machum Yehoshua , Giora Shacham
"Two Seas Canal" - Is it a real aim or some kind of a preconceived solution to an unspecified target?

"Two Seas Canal" - Is it a real aim or some kind of a preconceived solution to an unspecified target?

 Dan Zaslavsky
A Strategy for Developing Employment Opportunities for the Arabs in Israel: The Vision for Expanding the Arab Middle Class

A Strategy for Developing Employment Opportunities for the Arabs in Israel: The Vision for Expanding the Arab Middle Class

 Yusof Jabareen
Establishment of R&D Anti-Terror Warfare Mechanism for Homeland Security Protection from Terrorism

Establishment of R&D Anti-Terror Warfare Mechanism for Homeland Security Protection from Terrorism

 Orna Barri , Liron Nadav , Ilan Kuziatin , Shmulik Yachin , Manuel Trajtenberg , Danny Arditi , Hemi Peker , Dan Inbar
Vouchers for New Immigrants as Tools for the Job Market

Vouchers for New Immigrants as Tools for the Job Market

 Miriam Erez , Anat Rotstein
Energy efficiency in Ein Harod Ihud

Energy efficiency in Ein Harod Ihud

 Eliezer Fruchter , Gershon Grossman
Science , Technology and Innovation Indicators in Israel: An International Comparison (second edition)

Science , Technology and Innovation Indicators in Israel: An International Comparison (second edition)

 Daphne Getz , Dan Peled , Yair Even-Zohar , Tsipy Buchnik , Sivan Frenkel , Marian Shumaf - Tehawkho , Solly Peleg , Nava Brenner , Ora Shay , Galya Yohai

Newsletter #1 November 2007
Annual Report 2006-2007 Samuel Neaman Institute

Annual Report 2006-2007 Samuel Neaman Institute
Annual Report 2005-2006 Samuel Neaman Institute

Annual Report 2005-2006 Samuel Neaman Institute
Between technology development and public transparency: creating tools for public discussion on business ventures and technological alternatives for treating solid waste

Between technology development and public transparency: creating tools for public discussion on business ventures and technological alternatives for treating solid waste

 Ofira Ayalon , Yael Atar Peled , Yifaat Baron , Noam Gressel , Limor Spektorovsky
Energy Forum 8: Demand Side Management

Energy Forum 8: Demand Side Management

 Gershon Grossman , Ofira Ayalon , Tal Goldrath
Energy Forum 7: Biofuels for energy

Energy Forum 7: Biofuels for energy

 Doron Gal , Ofira Ayalon , Tal Goldrath
Energy Forum 6: Efficiency and Energy Savings in Air Conditioning Systems

Energy Forum 6: Efficiency and Energy Savings in Air Conditioning Systems

 Gershon Grossman , Ofira Ayalon
Energy Forum 5: Renewable energy R&D needs

Energy Forum 5: Renewable energy R&D needs

 Gershon Grossman , Ofira Ayalon
Energy Forum 4: Solar energy for the production of heat

Energy Forum 4: Solar energy for the production of heat

 Gershon Grossman , Ofira Ayalon , Yifaat Baron , Debby Kaufman
Tags: society economy Science, Technology, and Economy (STE) Manufacturing employment
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