Immigration and firm performance : evidence from Norway : an examination of the effect of employed immigrants on firm financial performance
MetadataShow full item record
- Master Thesis 
This thesis examines the empirical relationship between employed immigrants and firm financial performance in Norway during the period 2001-2008. More specifically, we estimate the effect of working immigrants on the firm performance measures of Return on Assets and Return on Equity. Using micro-level data on Norwegian firms and municipal-level shares of employed immigrants, we find that the effect of immigrants vary depending on the empirical method applied. We examine the data using OLS, fixed effects, and a shift-share instrumental variable approach. The shift-share instrument uses the national inflow of immigrants and the past settlement from each country of origin to predict the exogenous distribution of immigrants across Norwegian municipalities. The implementation of this instrument in our empirical analysis represents our effort to identify the causal effect of changes in the immigrant population on firm financial performance. Our primary conclusion is that we do not find evidence that employed immigrants have a negative effect on firm performance.