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Recruiting abroad: the role of foreign affinity and labour market scarcity


  • Bossler, Mario

    () (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])


"I study the recruiting behaviour of German establishments with regard to the use of foreign labour markets. Applying instrumental variable strategies, I find foreign affinity and labour market scarcity to stimulate the use of foreign markets. Regional labour market scarcity is particularly relevant to small firms, and the effect of foreign affinity is largely driven by the share of foreigners in leading positions in large establishments. The results indicate that shortages are functional and foster the use of foreign labour markets, but the large effect of foreign affinity also reveals that the potential of immigrant workers is used selectively." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Bossler, Mario, 2013. "Recruiting abroad: the role of foreign affinity and labour market scarcity," IAB Discussion Paper 201319, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:201319

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    References listed on IDEAS

    1. Laura Giuliano & David I. Levine & Jonathan Leonard, 2009. "Manager Race and the Race of New Hires," Journal of Labor Economics, University of Chicago Press, vol. 27(4), pages 589-631, October.
    2. Winkelmann, Rainer, 2001. "Why Do Firms Recruit Internationally? Results from the IZA International Employer Survey 2000," IZA Discussion Papers 331, Institute for the Study of Labor (IZA).
    3. Gil S. Epstein & Astrid Kunze & Melanie E. Ward, 2009. "High-Skilled Migration And The Exertion Of Effort By The Local Population," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(3), pages 332-352, July.
    4. Annekatrin Niebuhr & Silvia Stiller, 2004. "Integration and Labour Markets in European Border regions," ERSA conference papers ersa04p29, European Regional Science Association.
    5. Thomas K. Bauer & Astrid Kunze, 2004. "The demand for high-skilled workers and immigration policy," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 47(1), pages 77-88.
    6. Sanne Hiller, 2013. "Does immigrant employment matter for export sales? Evidence from Denmark," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(2), pages 369-394, June.
    7. Joseph G. Altonji & Charles R. Pierret, 2001. "Employer Learning and Statistical Discrimination," The Quarterly Journal of Economics, Oxford University Press, vol. 116(1), pages 313-350.
    8. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
    9. Pauser, Johannes, 2013. "Capital mobility, imperfect labour markets, and the provision of public goods," IAB Discussion Paper 201309, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    10. Burkert, Carola & Niebuhr, Annekatrin & Wapler, Rüdiger, 2007. "Regional disparities in employment of high-skilled foreigners: Determinants and options for migration policy in Germany," HWWI Research Papers 3-7, Hamburg Institute of International Economics (HWWI).
    11. Ivana Fellini & Anna Ferro & Giovanna Fullin, 2007. "Recruitment processes and labour mobility: the construction industry in Europe," Work, Employment & Society, British Sociological Association, vol. 21(2), pages 277-298, June.
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    More about this item


    Fachkräfte; Arbeitskräftemangel; ausländische Arbeitnehmer; Rekrutierung; ausländische Arbeitgeber; Personalbeschaffung; Ausland; Arbeitslosenquote; Einwanderer; Nationalität; Personalauswahl - Determinanten;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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